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Blackstone Group (BX) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Blackstone Group (BX) closed the most recent trading day at $50.37, moving +0.58% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.17%.

Coming into today, shares of the investment manager had gained 3.84% in the past month. In that same time, the Finance sector gained 2.59%, while the S&P 500 gained 4.92%.

Wall Street will be looking for positivity from BX as it approaches its next earnings report date. On that day, BX is projected to report earnings of $0.59 per share, which would represent a year-over-year decline of 22.37%. Our most recent consensus estimate is calling for quarterly revenue of $1.48 billion, down 19.36% from the year-ago period.

BX's full-year Zacks Consensus Estimates are calling for earnings of $2.32 per share and revenue of $5.53 billion. These results would represent year-over-year changes of +2.65% and -7.44%, respectively.

It is also important to note the recent changes to analyst estimates for BX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BX is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note BX's current valuation metrics, including its Forward P/E ratio of 21.63. This represents a premium compared to its industry's average Forward P/E of 11.45.

Investors should also note that BX has a PEG ratio of 1.06 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.

The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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