5 Reasons Why You Should Buy Blackstone (BX) Stock Right Now

Studying market data including diagrams

BlackstoneBX is a profitable investment option driven by steady earnings growth and strong liquidity position. Further, the company will continue benefiting from diversified products, revenue mix and rise in assets under management (AUM). Also, its robust fund-raising ability will support profitability.

Analysts also seem to be optimistic about its growth prospects as evident from the upward estimate revisions. Over the past 60 days, the Zacks Consensus Estimate for the current year has been revised 4.1% upward.

Further, this Zacks Rank #2 (Buy) stock has rallied 15.9% so far this year against the industry 's decline of 9.8%.

Why Blackstone Is an Attractive Investment Option

Earnings Growth: In the last three to five years, Blackstone reported 6.4% decline in earnings, mainly due to a tough operating environment. However, the company's earnings are projected to grow 9.6% and 2% in 2018 and 2019, respectively.

Further, its long-term (three to five years) expected EPS growth of 10.6% promises rewards for shareholders.

Also, the company has a decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters with an average beat of 22.9%.

Revenue Strength: Blackstone's revenues witnessed a three-year CAGR of 23.8% (2015-2017). Growth is anticipated to continue on the back of better performance of its funds. Top line is expected to grow nearly 3% in 2018 and 9.4% in 2019, indicating continued rise.

Steady AUM Growth: Blackstone's fee-earning AUM and total AUM have consistently demonstrated strong growth, aided by increasing net inflows. Over the last four years (2014-2017), fee-earning AUM has seen a CAGR of 15.7% and total AUM has recorded a CAGR of 14.3%. The growth trajectory will likely continue, driven by the company's diversified products, revenue mix and superior position in the alternative investments space.

Stock Seems Undervalued: With respect to price-to-cash flow (P/CF) and PEG ratios, Blackstone looks relatively undervalued. The company's P/CF ratio of 6.78 is below the industry average of 9.46. Also, the PEG ratio for the company is 1.13 compared with industry average of 1.38.

Superior Return on Equity (ROE): Blackstone has an ROE of 22.64%, significantly higher than the industry average of 12.95%. This shows that the company reinvests its cash more efficiently.

Other Stocks to Consider

Other stocks in the same space worth a look are Lazard Ltd. LAZ , Cohen & Steers Inc. CNS and Waddell & Reed Financial, Inc. WDR . All these stocks carry Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Lazard has witnessed an upward earnings estimate revision of 2.9% for the current year, over the past 60 days. Its share price has increased 10.1% in the past year.

Cohen & Steers' Zacks Consensus Estimate for the current year has moved nearly 1% upward over the past 60 days. Its shares have gained 7.6% in the past 12 months.

Waddell & Reed has witnessed an upward earnings estimate revision of 2.3% for the current year over the past 60 days. Its shares price has increased 12.3% in a year's time.

5 Companies Verge on Apple-Like Run

Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025.

Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.

Click to see them right now >>

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

Cohen & Steers Inc (CNS): Free Stock Analysis Report

The Blackstone Group L.P. (BX): Free Stock Analysis Report

Lazard Ltd (LAZ): Free Stock Analysis Report

Waddell & Reed Financial, Inc. (WDR): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.