Blackstone Group (BX) Stock Sinks As Market Gains: What You Should Know
Blackstone Group (BX) closed the most recent trading day at $40.65, moving -1.22% from the previous trading session. This move lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, added 0.29%.
Coming into today, shares of the investment manager had gained 2.52% in the past month. In that same time, the Finance sector lost 3.13%, while the S&P 500 lost 3.66%.
BX will be looking to display strength as it nears its next earnings release. In that report, analysts expect BX to post earnings of $0.60 per share. This would mark a year-over-year decline of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.44 billion, down 26.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.35 per share and revenue of $5.54 billion. These totals would mark changes of +3.98% and -7.31%, respectively, from last year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. BX currently has a Zacks Rank of #3 (Hold).
In terms of valuation, BX is currently trading at a Forward P/E ratio of 17.5. For comparison, its industry has an average Forward P/E of 11.99, which means BX is trading at a premium to the group.
Also, we should mention that BX has a PEG ratio of 0.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BX's industry had an average PEG ratio of 1.56 as of yesterday's close.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.