Ares Management Corporation (ARES), headquartered in Los Angeles, California, operates as an alternative asset manager. Valued at $46.7 billion by market cap, the company invests in credit, real assets, private equity, and secondaries market.
Shares of this leading global alternative investment manager have notably underperformed the broader market over the past year. ARES has declined 20.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.5%. In 2026, ARES stock is down 12.6%, compared to the SPX’s 12.1% rise on a YTD basis.
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Narrowing the focus, ARES’ underperformance is also apparent compared to the State Street Financial Select Sector SPDR ETF (XLF). The exchange-traded fund has gained about 7.4% over the past year. Moreover, the ETF’s 5.1% returns on a YTD basis outshine the stock’s double-digit losses over the same time frame.
www.barchart.com ARES underperformed as operating margin contracted YoY on higher G&A, partly due to its biennial global meeting and continued investment in tech, distribution, and front-office capacity.
On Jul. 31, ARES reported its Q2 results, and its shares closed up more than 8% in the following trading session. Its adjusted EPS of $1.29 met Wall Street expectations. The company’s revenue was $1.26 billion, missing Wall Street forecasts of $1.32 billion.
For the current fiscal year, ending in December, analysts expect ARES’ EPS to grow 24.8% to $5.94 on a diluted basis. The company’s earnings surprise history is mixed. It beat or matched the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 20 analysts covering ARES stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, two “Moderate Buys,” and seven “Holds.”
www.barchart.com The configuration has been relatively stable over the past three months.
On Aug. 6, TD Cowen kept a “Buy” rating on ARES and raised the price target to $163, implying a potential upside of 15.4% from current levels.
The mean price target of $150.80 represents a 6.8% premium to ARES’ current price levels. The Street-high price target of $205 suggests an ambitious upside potential of 45.1%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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