Is ARES a good stock to buy? We came across a bullish thesis on Ares Management Corporation on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on ARES. Ares Management Corporation’s share was trading at $132.82 as of June 11th. ARES’s trailing and forward P/E were 59.13 and 20.88 respectively according to Yahoo Finance.
YURALAITS ALBERT/Shutterstock.com
Ares Management Corporation operates as an alternative asset manager. ARES is presented as an attractive opportunity in the private credit sector, where recent concerns about credit quality and market stress have created a disconnect between fundamentals and valuation. Private credit remains a relatively small market compared to public credit, yet fears surrounding the asset class have weighed heavily on leading managers despite continued evidence of resilience.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
Ares, which manages approximately $650 billion in assets under management, is one of the largest private credit and alternative asset managers globally. Founded in 1997 by former Apollo executives, the firm has built a diversified platform focused primarily on global credit markets and has continued to expand its scale even as portions of the industry have experienced redemptions and investor uncertainty. The company’s recent share price decline of nearly 50% has occurred despite strong operating performance, creating what is viewed as a compelling entry point for long-term investors.
First-quarter results reported on May 1 demonstrated that credit quality remains healthy, while growth continued to exceed expectations, reinforcing confidence in the durability of the firm’s investment portfolio and earnings power. Ares has also continued to attract capital, driving assets under management to record levels and supporting long-term fee-related earnings growth.
The investment case is further strengthened by several potential catalysts, including expected interest rate cuts, improving sentiment toward private credit, stabilization across the sector, and rising dividend distributions. Strong asset gathering and resilient fundamentals position the company to benefit as market concerns fade. The stock is viewed as offering significant upside potential, with a price target of $185, implying substantial upside from the current level while providing exposure to a high-quality and growing private credit franchise.
Previously, we covered a bullish thesis on BlackRock, Inc. (BLK) by Kroker Equity Research in February 2025, which highlighted the company’s record inflows, expanding private markets platform, growth of Aladdin, and diversified fee-based earnings model. BLK’s stock price has appreciated by approximately 2.47% since our coverage. @MoneyShow shares a similar view but emphasizes on Ares Management Corporation’s resilience in private credit, accelerating AUM growth, healthy credit quality, rising dividends, and valuation upside as sector concerns continue to moderate.
Ares Management Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held ARES at the end of the first quarter which was 51 in the previous quarter. While we acknowledge the risk and potential of ARES as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ARES and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
