And the alternative asset manager could rise in the future due to strong financial performance and investments in new markets. But another likely reason is Big Money lifting the stock once again.
Ares Brings in Big Money
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Ares has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares over time.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
Of course, when tides turn, sometimes Big Money sells. That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at the Big Money signals ARES has made over the last year – plenty of buying and selling.
The last few weeks have seen Big Money activity too. Each green bar signals big buying volumes as the stock ramped in price:
In the last year, the stock attracted six Big Money buy signals and 11 Big Money sell signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out the technical action grabbing my attention:
- 3-month outperformance vs. Financial Select Sector SPDR ETF (+12.8% vs. XLF)
Outperformance is important for leading stocks.
Ares Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Ares has had triple-digit sales and earnings growth, and the future earnings outlook is solid too. Take a look:
- 1-year sales growth rate (+159.8%)
- 3-year EPS growth rate (+136.2%)
- 1-year EPS growth estimate (+27.9%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, ARES has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has had buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
ARES has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 22 times since 2019, with its first appearance on 05/21/2019…and gaining 182.7% since. The blue bars below show when Ares was a top pick:
It’s been a top stock in the financial sector according to the MAPsignals process. I wouldn’t be surprised if ARES makes additional appearances in the years to come. Let’s tie this all together.
Ares Price Prediction
The Ares rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus ARES pays a current dividend yield of more than 3.7%. 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 positions in ARES at the time of publication.
Learn more about the MAPsignals process here.