Blackstone earnings spark fresh look at the stock
Blackstone (BX) just posted its third quarter results, with net income and earnings per share higher than a year ago while revenue was slightly lower. That mix of profitability and top line movement gives investors fresh numbers to assess.
At a share price of US$119.06, Blackstone has seen a 7 day share price return of 11.18% that contrasts with a year to date share price decline of 25.03%. The 3 year total shareholder return of 40.54% points to momentum that has built over a longer period, even as recent moves reflect investors recalibrating risk and earnings expectations around the latest quarterly results, dividend update and board transition news.
Scan how Blackstone compares with other listed asset managers by running the hand picked 30 resilient stocks with low risk scores for ideas with more resilient profiles in the same space.
The question now is whether Blackstone’s sharp recent rebound mainly reflects those sturdier profit figures or a swing in mood around an out of favor stock, and how that balance shows up in the current valuation.
Most Popular Narrative: 15% Undervalued
On the most followed narrative, Blackstone screens as undervalued, with a fair value of about $140.55 compared with the latest $119.06 close. This supports a story driven more by fee longevity than by a single quarter of earnings.
The expansion of perpetual and multi asset vehicles such as BXMA, which has reached US$109b of AUM after 25 consecutive quarters of positive returns and recent fundraising, supports more recurring fee revenue and can affect overall earnings quality as these vehicles grow as a share of the mix.
See why 108 investors see Blackstone as 15% undervalued.
Result: Fair Value of $140.55 (UNDERVALUED)
Still, stress in parts of Blackstone’s real estate portfolio and the risk of choppy exit markets could easily weaken the bullish undervaluation story.
Find out about the key risks to this Blackstone narrative.
Next Steps
Mixed emotions on Blackstone after these earnings and valuation signals. If you want your own take, start with the 3 key rewards and 3 important warning signs.
Looking for more investment ideas beyond Blackstone?
Blackstone gives you one angle on the market, but your portfolio deserves a wider bench of opportunities that match different goals, risks and income needs.
- Target stronger balance sheets and sturdier fundamentals by scanning our curated list of solid balance sheet and fundamentals (24 results) which screens for businesses with financials built to handle tougher conditions.
- Hunt for quality at a discount by checking the 29 high quality undervalued stocks which highlights stocks where fundamentals and price appear out of sync.
- Boost your income stream by reviewing the 5 dividend fortresses which focuses on companies offering yields of 5% or more with an emphasis on resilience.
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