Ares Management Corporation (ARES), headquartered in Los Angeles, California, operates as an alternative asset manager. Valued at $40.3 billion by market cap, the company invests in credit, real assets, private equity, and secondaries market.
Shares of this leading global alternative investment manager have notably underperformed the broader market over the past year. ARES has declined 22% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.4%. In 2026, ARES stock is down 23.3%, compared to the SPX’s 8.8% 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 2.9% over the past year. Moreover, the ETF’s 5.6% losses on a YTD basis outshines the stock’s double-digit dip over the same time frame.
www.barchart.com On May 1, ARES shares closed up more than 1% after reporting its Q1 results. Its adjusted EPS of $1.24 missed Wall Street expectations of $1.32. The company’s revenue stood at $1.4 billion, up 28.3% year over year.
For the current fiscal year, ending in December, analysts expect ARES’ EPS to grow 27.1% to $6.05 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion.
Among the 19 analysts covering ARES stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.”
www.barchart.com This configuration is less bearish than a month ago, with one analyst suggesting a “Strong Sell.”
On May 18, TD Cowen analyst Bill Katz kept a “Buy” rating on ARES and lowered the price target to $144, implying a potential upside of 16.1% from current levels.
The mean price target of $150.78 represents a 21.6% premium to ARES’ current price levels. The Street-high price target of $205 suggests an ambitious upside potential of 65.3%.
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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