On Apr 3, 2013, we reiterated our long-term recommendation on
The Blackstone Group LP
) at Outperform. The reaffirmation is based on the company's
continuing organic and inorganic growth prospects as well as
better-than-expected fourth quarter results.
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Blackstone is scheduled to announce its first quarter 2013
results on Apr 18. The Zacks Consensus Estimate for the quarter
is pegged at 53 cents per share. The Zacks Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) for Blackstone is +7.55% for the first quarter. This, along
with its Zacks Rank #3 (Hold), makes it likely for the company to
report a positive earnings surprise.
Over the past 60 days, the Zacks Consensus Estimate for 2013
inched up 1.9% to $2.20 per share while the Zacks Consensus
Estimate for 2014 was down by a penny to $2.63 over the same
Blackstone's diversified revenue mix and footprints, cost
containment efforts as well as steadily increasing asset under
management (AUM), will supplement its future growth. Further, the
modestly improving economic condition will aid the company's fund
raising ability, though regulatory changes would have a somewhat
Additionally, Blackstone's fourth quarter economic net income per
share outpaced the Zacks Consensus Estimate by 25.5%.
Better-than-expected results were primarily driven by its
top-line growth, partly offset by a rise in operating expenses.
Other Stock Worth Considering
Although we prefer Blackstone, there are other investment
management stocks worth a look. These include
Ameriprise Financial Inc.
). All these carry a Zacks Rank #2 (Buy).