Back to top

Analyst Blog

On Apr 3, 2013, we reiterated our long-term recommendation on The Blackstone Group LP (BX - Analyst Report) at Outperform. The reaffirmation is based on the company’s continuing organic and inorganic growth prospects as well as better-than-expected fourth quarter results.

Why Outperform?

Blackstone is scheduled to announce its first quarter 2013 results on Apr 18. The Zacks Consensus Estimate for the quarter is pegged at 53 cents per share. The Zacks Earnings ESP (Read: Zacks Earnings ESP: A Better Method) for Blackstone is +7.55% for the first quarter. This, along with its Zacks Rank #3 (Hold), makes it likely for the company to report a positive earnings surprise.

Over the past 60 days, the Zacks Consensus Estimate for 2013 inched up 1.9% to $2.20 per share while the Zacks Consensus Estimate for 2014 was down by a penny to $2.63 over the same period.

Blackstone’s diversified revenue mix and footprints, cost containment efforts as well as steadily increasing asset under management (AUM), will supplement its future growth. Further, the modestly improving economic condition will aid the company’s fund raising ability, though regulatory changes would have a somewhat mitigating impact.

Additionally, Blackstone’s fourth quarter economic net income per share outpaced the Zacks Consensus Estimate by 25.5%. Better-than-expected results were primarily driven by its top-line growth, partly offset by a rise in operating expenses.

Other Stock Worth Considering

Although we prefer Blackstone, there are other investment management stocks worth a look. These include Ameriprise Financial Inc. (AMP - Analyst Report), Invesco Ltd (IVZ - Analyst Report) and BlackRock, Inc. (BLK - Analyst Report). All these carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.73 +5.07%
GREEN PLAIN… GPRE 45.60 +4.09%
WEATHERFORD… WFT 23.69 +3.31%
BANCO DO BR… BDORY 14.31 +2.54%
US SILICA H… SLCA 68.90 +2.12%