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Blackstone Group (BX) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Blackstone Group (BX - Free Report) closed at $46.50, marking a -1.29% move from the previous day. This change lagged the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the investment manager had lost 9.82% over the past month, lagging the Finance sector's loss of 0.58% and the S&P 500's loss of 0.91% in that time.

Wall Street will be looking for positivity from BX as it approaches its next earnings report date. This is expected to be October 23, 2019. The company is expected to report EPS of $0.54, down 28.95% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.35 billion, down 26.38% from the prior-year quarter.

BX's full-year Zacks Consensus Estimates are calling for earnings of $2.27 per share and revenue of $5.38 billion. These results would represent year-over-year changes of +0.44% and -9.9%, respectively.

Investors might also notice recent changes to analyst estimates for BX. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 2.16% lower. BX is currently a Zacks Rank #3 (Hold).

In terms of valuation, BX is currently trading at a Forward P/E ratio of 20.77. Its industry sports an average Forward P/E of 10.92, so we one might conclude that BX is trading at a premium comparatively.

Meanwhile, BX's PEG ratio is currently 1.04. 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. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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