Blackstone’s Stellar Performance Sets it Apart in Investment Sector
Headquartered in New York City, Blackstone Inc. (BX) is a leading global investment firm with a market cap of $132.2 billion. Recognized for its skills in alternative asset management, Blackstone focuses on private equity, real estate, credit, and hedge funds.
Impressive Gains Outshine Market Trends
Shares of Blackstone have significantly outperformed the overall market in the last year. BX’s value has increased by 83.2% during this period, while the S&P 500 Index ($SPX) has seen a growth of nearly 35.5%. In 2024, BX stock is up 38%, exceeding the SPX’s YTD increase of 25.5%.
Blackstone vs. Financial ETFs
When we compare BX’s performance with the iShares U.S. Financial Services ETF (IYG), the disparity becomes even clearer. The ETF has only gained 33.5% YTD and 53.4% over the past year.
Positive Earnings Report Boosts Stocks
On October 17, after announcing its Q3 earnings, Blackstone’s shares rose over 6%. The company reported distributable earnings of $1.3 billion, or $1.01 per share, marking a 7% increase from the previous year. Total assets under management reached $1.1 trillion, fueled by $41 billion in inflows for the quarter. The firm also recorded fee-related earnings of $1.2 billion, signaling strong financial health and a solid business outlook.
Analysts Project Continued Growth
For the fiscal year ending in December, analysts forecast the company’s EPS to grow 11.1% to $4.39 on a diluted basis. Historically, Blackstone has displayed a mixed earnings surprise record, beating or matching estimates in three of the last four quarters, while missing once.
Analyst Sentiment Remains Strong
Among the 22 analysts who cover BX stock, the consensus rating is a “Moderate Buy.” This includes six “Strong Buy” ratings, one “Moderate Buy,” 14 “Holds,” and one “Strong Sell.” This setup has remained stable over the last three months.
Deutsche Bank Raises Price Target
On November 11, Deutsche Bank (DB) lifted its price target for BX from $172 to $182, while maintaining a “Buy” rating. The change came after the bank updated its macroeconomic assumptions following the U.S. elections.
Opportunity for Investors
Currently, the stock is trading above the average price target of $165.60; however, the highest target of $205 provides a potential upside of 13.5% from current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
