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Here's Why it is Wise to Hold Blackstone (BX) Stock Now
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Shares of The Blackstone Group L.P. (BX - Free Report) gained 13.9% in the last one year, marginally outpacing the Zacks categorized Investment Management industry’s growth of 12.7%. The company’s product diversification and revenue mix make it well positioned for growth.
However, the adverse impact of the ongoing volatility in the capital markets on the company’s financials along with the company’s increased dependence on management and advisory fees makes us apprehensive.
Moreover, Blackstone’s current year earnings estimates were marginally revised downwards in the last 60 days. Thus, the stock currently carries just a Zacks Rank #3 (Hold).
Blackstone’s organic growth prospects look encouraging. The company’s revenues grew at a five-year (2012–2016) CAGR of 6.3%. Revenues are expected to continue growing in the upcoming quarters on the back of better performance of its funds.
Also, the company has been witnessing strong assets under management (AUM) growth for the last few years. Its diversified products, revenue mix and superior position in the alternative investments space are likely to aid continued AUM growth in the upcoming quarters.
However, the company’s increased dependence on management and advisory fees for revenues could adversely affect its financials, if it witnesses any change in the managed assets, regulations or a slowdown in business activities.
Some better-ranked stocks in the finance space are Raymond James Financial, Inc. (RJF - Free Report) , Comerica Incorporated (CMA - Free Report) and Lazard Ltd (LAZ - Free Report) .
Raymond James Financial witnessed an upward earnings estimate revision of 6% for the current fiscal year, over the last 60 days. Its share price increased 11.5% in the last six months. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comerica carries a Zacks Rank #2 (Buy). For the current year, in the last 60 days, its Zacks Consensus Estimate was revised 10.2% upward. The company’s share price increased 23.3% in the last six months.
Lazard has a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 5.7% for the current year, in the last 60 days. Its share price increased 16.5% in the last six months.
The Best & Worst of Zacks
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Here's Why it is Wise to Hold Blackstone (BX) Stock Now
Shares of The Blackstone Group L.P. (BX - Free Report) gained 13.9% in the last one year, marginally outpacing the Zacks categorized Investment Management industry’s growth of 12.7%. The company’s product diversification and revenue mix make it well positioned for growth.
However, the adverse impact of the ongoing volatility in the capital markets on the company’s financials along with the company’s increased dependence on management and advisory fees makes us apprehensive.
Moreover, Blackstone’s current year earnings estimates were marginally revised downwards in the last 60 days. Thus, the stock currently carries just a Zacks Rank #3 (Hold).
Blackstone’s organic growth prospects look encouraging. The company’s revenues grew at a five-year (2012–2016) CAGR of 6.3%. Revenues are expected to continue growing in the upcoming quarters on the back of better performance of its funds.
Also, the company has been witnessing strong assets under management (AUM) growth for the last few years. Its diversified products, revenue mix and superior position in the alternative investments space are likely to aid continued AUM growth in the upcoming quarters.
However, the company’s increased dependence on management and advisory fees for revenues could adversely affect its financials, if it witnesses any change in the managed assets, regulations or a slowdown in business activities.
Some better-ranked stocks in the finance space are Raymond James Financial, Inc. (RJF - Free Report) , Comerica Incorporated (CMA - Free Report) and Lazard Ltd (LAZ - Free Report) .
Raymond James Financial witnessed an upward earnings estimate revision of 6% for the current fiscal year, over the last 60 days. Its share price increased 11.5% in the last six months. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comerica carries a Zacks Rank #2 (Buy). For the current year, in the last 60 days, its Zacks Consensus Estimate was revised 10.2% upward. The company’s share price increased 23.3% in the last six months.
Lazard has a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 5.7% for the current year, in the last 60 days. Its share price increased 16.5% in the last six months.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>