Learn more about whether Ares Commercial Real Estate Corp is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (ACRE) grades on certain investment factors and determine whether it meets your investment needs.

Latest Ares Commercial Real Estate Corp Stock News

As of May 24, 2024, Ares Commercial Real Estate Corp had a $363.0 million market capitalization, putting it in the 51st percentile of companies in the REITs - Specialized industry.

Ares Commercial Real Estate Corp does not have a meaningful P/E due to negative earnings over the last 12 trailing months. Ares Commercial Real Estate Corp’s trailing 12-month revenue is $200.6 million with a -22.3% profit margin. Year-over-year quarterly sales growth most recently was -4.0%. Analysts expect adjusted earnings to reach $-0.007 per share for the current fiscal year. Ares Commercial Real Estate Corp currently has a 15.3% dividend yield.



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Grading Ares Commercial Real Estate Corp Stock

Before you choose to buy, sell or hold Ares Commercial Real Estate Corp stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (ACRE) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Ares Commercial Real Estate Corp’s stock grades for value, growth and quality. Learn more about A+ Investor here!

Ares Commercial Real Estate Corp Stock Value Grade

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Ares Commercial Real Estate Corp has a Value Score of 93, which is Deep Value.

Latest Ares Commercial Real Estate Corp Stock News

As of May 24, 2024, Ares Commercial Real Estate Corp had a $363.0 million market capitalization, putting it in the 51st percentile of companies in the REITs - Specialized industry.

Ares Commercial Real Estate Corp does not have a meaningful P/E due to negative earnings over the last 12 trailing months. Ares Commercial Real Estate Corp’s trailing 12-month revenue is $200.6 million with a -22.3% profit margin. Year-over-year quarterly sales growth most recently was -4.0%. Analysts expect adjusted earnings to reach $-0.007 per share for the current fiscal year. Ares Commercial Real Estate Corp currently has a 15.3% dividend yield.



Sign Up to Receive a Free Special Report That Shows How A+ Investor Grades Can Help You Make Investment Decisions

Grading Ares Commercial Real Estate Corp Stock

Before you choose to buy, sell or hold Ares Commercial Real Estate Corp stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (ACRE) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Ares Commercial Real Estate Corp’s stock grades for value, growth and quality. Learn more about A+ Investor here!

Ares Commercial Real Estate Corp Stock Value Grade

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. To decide if Ares Commercial Real Estate Corp stock is a buy or sell, you’ll want to evaluate its fair market price or intrinsic value.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81-100 are considered deep value, those with a score between 61-80 are value and so on.

Ares Commercial Real Estate Corp has a Value Score of 93, which is Deep Value.

Ares Commercial Real Estate Corp Stock Growth Grade

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the Growth Score and assign it a letter grade, the percentile ranks for each of the three individual components‐consistency of annual sales growth, five‐year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered Very Weak, while those in the top 20% receive A grades, which are considered Very Strong.

Ares Commercial Real Estate Corp has a Growth Score of 85, which is Very Strong.

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Ares Commercial Real Estate Corp Stock Momentum Grade

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Ares Commercial Real Estate Corp has a Momentum Score of 28, which is Weak.

Other Ares Commercial Real Estate Corp Stock Grades

In addition to Value, Momentum and Growth, A+ Investor also provides grades for Estimate Revisions and Quality.

The Earnings Estimate Revisions Grade takes into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too). AAII’s stock screen that follows the companies with the highest earnings estimate revisions (i.e., the best grades) has a 23.3% backtested annual return since inception, whereas an example screen following those with the worst revisions has a backtested annual return since inception of under 5%.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the Quality Grade is the percentile rank of the composite return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F—Score.

These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether Ares Commercial Real Estate Corp’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.

Should I Buy Ares Commercial Real Estate Corp Stock?

Overall, Ares Commercial Real Estate Corp stock has a Value Grade of A, Growth Grade of A, Momentum Grade of D .

Whether or not you should buy Ares Commercial Real Estate Corp stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.

Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how Ares Commercial Real Estate Corp stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.

Ares Commercial Real Estate Corp (ACRE) Competitors

Companies similar to Ares Commercial Real Estate Corp in the REITs - Specialized industry.

Company name	Ticker	Market Cap
Chatham Lodging Trust	CLDT	$416.70Mil
Invesco Mortgage Capital Inc	IVR	$446.75Mil
Orchid Island Capital Inc	ORC	$453.99Mil
Universal Health Realty Income Trust	UHT	$516.23Mil
Gladstone Land Corp	LAND	$477.37Mil

Ares Commercial Real Estate Corp Stock: Bottom Line

You can use the information about how Ares Commercial Real Estate Corp is graded to determine if you should invest in this stock. However, you should decide whether Ares Commercial Real Estate Corp’s stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets—without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

So, if you’re still on the fence about whether Ares Commercial Real Estate Corp is a buy, sell or hold, you can utilize AAII’s expansive and robust screening tools like A+ Investor to help with your decision.

A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.