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

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In the latest trading session, Blackstone Group (BX - Free Report) closed at $35.36, marking a +0.54% move from the previous day. This move outpaced the S&P 500's daily loss of 0.25%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.53%.

Heading into today, shares of the investment manager had gained 1.12% over the past month, outpacing the Finance sector's loss of 1.43% and the S&P 500's loss of 2.35% in that time.

BX will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $0.69, down 2.82% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.58 billion, down 16.14% from the prior-year quarter.

BX's full-year Zacks Consensus Estimates are calling for earnings of $2.87 per share and revenue of $7.08 billion. These results would represent year-over-year changes of +2.14% and -0.58%, respectively.

Investors might also notice recent changes to analyst estimates for BX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. The Zacks Consensus EPS estimate has moved 6.85% lower within the past month. BX currently has a Zacks Rank of #3 (Hold).

In terms of valuation, BX is currently trading at a Forward P/E ratio of 12.24. This represents a premium compared to its industry's average Forward P/E of 10.93.

Also, we should mention that BX has a PEG ratio of 1.18. 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. The Financial - Investment Management was holding an average PEG ratio of 1.19 at yesterday's closing price.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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