Ares Management’s Profits, Dividends Attract Big Money

Ares Management provides investment advisory services and strategies across multiple business segments, including credit, private equity, real assets, and secondary markets. It has been a consistent quarterly dividend payer since 2014, with a dividend growth rate of 24.4% over the last three years. Over the past decade, ARES has produced consistent profits, especially relative to competitors.

The company will report earnings in early August. The consensus per-share earnings expectation is $0.98, and the current dividend yield stands at 2.4%. The forward dividend yield is 2.8%, which suggests more profitability is on the horizon.

It’s no wonder ARES shares are up 24% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money’s Clear Ares Management Interest

Institutional volumes reveal plenty. In the last year, ARES has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in ARES shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of financials names are under accumulation right now. But there’s a powerful fundamental story happening with Ares Management.

Ares Management Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, ARES has had strong sales and earnings growth:

• 3-year sales growth rate (+53.1%)
• 3-year EPS growth rate (+91%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +40.7%.

Now it makes sense why the stock has been powering to new heights. ARES has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Ares Management has been a top-rated stock at MAPsignals for a while. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last six years. The blue bars below show when ARES was a top pick…making the stock soar:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Ares Management Price Prediction

The ARES rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in ARES at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.