Yahoo Finance Earnings Estimates Moving Higher for Blackstone Inc. (BX): Time to Buy?
Blackstone Inc. (BX) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this investment manager, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Blackstone Inc. There has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $1.16 per share, which is a change of +2.65% from the year-ago reported number.
Over the last 30 days, the Zacks Consensus Estimate for Blackstone Inc. has increased 10.19% because three estimates have moved higher while one has gone lower.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $4.08 per share, representing a year-over-year change of +53.96%.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, four estimates have moved up for Blackstone Inc. versus one negative revision. This has pushed the consensus estimate 10.39% higher.
Favorable Zacks Rank
The promising estimate revisions have helped Blackstone Inc. earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Blackstone Inc. have attracted decent investments and pushed the stock 13.2% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Blackstone Inc. (BX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
