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Blackstone Group (BX) Gains As Market Dips: What You Should Know

Blackstone Group (BX) closed at $27.75 in the latest trading session, marking a +0.54% move from the prior day. This change outpaced the S&P 500's 1.58% loss on the day. Elsewhere, the Dow lost 1.99%, while the tech-heavy Nasdaq lost 1.63%.

Coming into today, shares of the investment manager had lost 14.89% in the past month. In that same time, the Finance sector lost 8.61%, while the S&P 500 lost 6.62%.

Investors will be hoping for strength from BX as it approaches its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $0.61, down 14.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.58 billion, down 16.14% from the year-ago period.

BX's full-year Zacks Consensus Estimates are calling for earnings of $2.91 per share and revenue of $7.01 billion. These results would represent year-over-year changes of +3.56% and -1.6%, respectively.

Any recent changes to analyst estimates for BX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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 has moved 1.69% lower. BX is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note BX's current valuation metrics, including its Forward P/E ratio of 9.48. This represents a discount compared to its industry's average Forward P/E of 9.58.

We can also see that BX currently has a PEG ratio of 1.34. 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 1.22 at yesterday's closing price.

The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow BX in the coming trading sessions, be sure to utilize Zacks.com.

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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.

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