U.S. Markets open in 6 hrs 2 mins

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

Zacks Equity Research
Mutual Fund Report for GABUX

Blackstone Group (BX) closed at $34.97 in the latest trading session, marking a +1.04% move from the prior day. This change outpaced the S&P 500's 0.67% gain on the day. At the same time, the Dow added 0.82%, and the tech-heavy Nasdaq gained 0.78%.

Prior to today's trading, shares of the investment manager had gained 3.65% over the past month. This has outpaced the Finance sector's loss of 1.59% and the S&P 500's gain of 1.25% in that time.

Wall Street will be looking for positivity from BX as it approaches its next earnings report date. This is expected to be April 18, 2019. In that report, analysts expect BX to post earnings of $0.62 per share. This would mark a year-over-year decline of 4.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.93 billion, up 15.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.62 per share and revenue of $7.48 billion. These totals would mark changes of +15.93% and +25.27%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for BX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BX currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, BX is holding a Forward P/E ratio of 13.22. This valuation marks a premium compared to its industry's average Forward P/E of 12.04.

Also, we should mention that BX has a PEG ratio of 3.31. 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. The Financial - Investment Management was holding an average PEG ratio of 1.61 at yesterday's closing price.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Blackstone Group L.P. (BX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research