ARES Stock Analysis — Ares Management
Sector: Financials
AI Verdict
Ares trades at 18.4x next year's earnings with sky-high growth expectations, so it's cheap for the growth you're getting if the moat around institutional deal flow holds up — but the market is unforgiving if that growth slips.
Competitive Moat
Ares is an alternative asset manager specializing in private credit, private equity, and real assets, leveraging deep institutional relationships and scale to access deal flow that smaller competitors can't match. Its defensibility comes from long-duration capital commitments and a reputation for navigating complex credit markets, making it a go-to partner for large institutional investors.
Summary
Ares is on watch because its forward P/E of 18.4x bakes in a massive 227.9% jump in earnings expected over the next year.
Where It Stands
Ares has a 1-year return of -19.96%, an RSI of 45.0 signaling cooling momentum, and trades at 18.4x next year's earnings versus the sector median of 14x.
Key Metrics
- RSI: 45 — Neutral
- Trailing P/E: 60.5x
- Forward P/E: 18.4x
- PEG Ratio: 0.26
- Earnings Growth: +2.3%
- Revenue Growth: +0.2%
- Market Cap: $46.7B
- Dividend Yield: 0.03%
- 1-Year Return: -19.96%
- 52-Week High: $186.85
- 52-Week Low: $95.80
Analyst Consensus
18 Buy · 7 Hold · 0 Sell (25 analysts)
Bull Case
With analyst consensus calling for 227.9% EPS growth and a forward P/E of 18.4x, you're paying a low price for blockbuster earnings acceleration if it materializes.
Bear Case
If Ares fails to deliver on the 227.9% EPS growth, the stock could see a sharp de-rating from its 60.5x trailing P/E, risking further downside after a -19.96% 1-year return.
Catalyst to Watch
Watch for quarterly earnings — any miss on the 227.9% EPS growth expectation could trigger another round of P/E compression.