ARES Stock Analysis — Ares Management
Sector: Financials
AI Verdict
Ares trades at 19.5x next year's earnings with 155% expected EPS growth—cheap for the growth if their alternative asset platform keeps delivering, but any stumble could erase the premium fast.
Competitive Moat
Ares specializes in alternative asset management, focusing on private credit, private equity, and real assets, which generate recurring fee income and create sticky client relationships. Their scale and deep institutional network give them privileged deal flow and access to capital that smaller rivals can't match.
Summary
Ares is notable for its expected 155% forward EPS growth, far outpacing most financial peers.
Where It Stands
Ares is down -24.24% over the past year, trades at 19.5x forward earnings versus a sector median of 14x, and sits at an RSI of 64.9, signaling neutral-to-elevated territory.
Key Metrics
- RSI: 64.9 — Near Overbought
- Trailing P/E: 49.8x
- Forward P/E: 19.5x
- PEG Ratio: 0.32
- Earnings Growth: +1.6%
- Revenue Growth: +0.4%
- Market Cap: $38.8B
- Dividend Yield: 0.05%
- 1-Year Return: -24.24%
- 52-Week High: $195.26
- 52-Week Low: $95.80
Analyst Consensus
17 Buy · 6 Hold · 0 Sell (23 analysts)
Bull Case
With analysts forecasting 155% EPS growth and a forward P/E of 19.5x, you're paying a modest multiple for explosive earnings momentum.
Bear Case
If the forward P/E reverts to the sector median of 14x, the stock could see a further 28% downside from current levels even if earnings hit targets.
Catalyst to Watch
Watch for quarterly earnings delivery—if Ares misses the aggressive EPS growth targets, the premium multiple could unwind quickly.