Ares Management (ARES) has emerged as one of the top stocks to buy and watch, displaying impressive resilience despite the ongoing market correction. The company experienced accelerated earnings growth and a breakout in June, which has contributed to its strong performance.
After a period of sideways movement in 2022, Ares is now poised for another upward trajectory. In June, the stock broke out from a flat-base buy point of 90.28. Although the stock has experienced several pullbacks to the 50-day line, it continues to move towards the 20%-25% profit zone from the June breakout, indicating its ability to withstand market pressure.
In recent weeks, Ares formed a three-weeks-tight pattern, providing investors with an opportunity to add shares to their existing positions. The pattern indicates a buy point of 107.37, and the stock has also found support at its 10-week moving average.
Ares’ stock has been steadily climbing, with the relative strength line showing a rising trend as well. Additionally, the company maintains strong IBD Ratings, including a perfect 99 Composite Rating, a 98 EPS Rating, and a 95 Relative Strength Rating.
However, it is important to note that while Ares’ chart action makes it an attractive stock to buy, it may be wiser to watch the stock closely until the market corrects. Generally, the overall market trend tends to influence three out of every four stocks.
One crucial criterion investors should consider when evaluating stocks is earnings growth. Ares meets this requirement, with earnings growth of 104% and 252% in the two most recent quarters. Analysts also anticipate a 328% surge in earnings per share for this year. Furthermore, revenue has also seen substantial growth, increasing by 14% and 82% in the past two quarters.
Ares Management, headquartered in Los Angeles, provides investment opportunities across various asset classes, including credit, private equity, real estate, and infrastructure. The company also offers consulting services to institutions and high-net-worth clients.
In conclusion, Ares Management’s impressive earnings growth, breakout performance, and strong chart action make it an enticing stock to consider. However, it may be wise to closely monitor market conditions before making any investment decisions. With its stellar financials and diverse investment offerings, Ares Management has positioned itself as an attractive option for investors seeking growth opportunities.