Back to top

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

Read MoreHide Full Article

Blackstone Group (BX - Free Report) closed at $33.22 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 1.04%.

Prior to today's trading, shares of the investment manager had lost 10.83% over the past month. This has lagged the Finance sector's loss of 4.04% and the S&P 500's loss of 6.28% 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 February 7, 2019. The company is expected to report EPS of $0.69, down 2.82% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.58 billion, down 16.14% from the year-ago period.

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 recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.81% lower. BX currently has a Zacks Rank of #3 (Hold).

In terms of valuation, BX is currently trading at a Forward P/E ratio of 11.69. This represents a premium compared to its industry's average Forward P/E of 10.72.

Investors should also note that BX has a PEG ratio of 1.13 right now. 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. BX's industry had an average PEG ratio of 1.18 as of yesterday's close.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% 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.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


The Blackstone Group L.P. (BX) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in