Skip to main content

Blackstone Group (NYSE:BX) Stock a Buy After Posting Record Profits

Friday, April 23, 2021 | Sean Sechler
Blackstone Group (NYSE:BX) Stock a Buy After Posting Record ProfitsAre you familiar with the term “alternative asset manager” and the company Blackstone Group (NYSE:BX)? An alternative asset manager invests in things that average investors typically don’t have access to. Some examples include private equity or venture capital, hedge funds, distressed debt, commodities, and real estate. Since they are complex investments that are not regulated by the SEC and can be illiquid, alternative investments are usually held by institutional investors or high-net-worth individuals. That’s part of the reason why buying shares of a company like Blackstone Group is so intriguing.

It's an investment firm with an alternative asset management business that includes real estate, private equity, public debt and equity, growth equity, non-investment grade credit, real assets, and secondary funds. That means retail investors can gain exposure to alternative investments through one of the global leaders in the sector by purchasing Blackstone Group shares. The company just posted record profits in Q1 and is a strong buy for several reasons. Let’s take a deeper look at what makes Blackstone Group so special below.

Global Leader in Alternative Asset Management

When it comes to finding the best companies to invest in for the long-term, it usually pays to find out which ones are the global leaders in their respective industries. Blackstone Group is compelling because it’s one of the best companies in the alternative assets industry, an area of financial services that can be incredibly lucrative. The company operates in four different segments, private equity, real estate, hedge fund solutions, and credit & insurance. That means investors will gain exposure to things like massive real estate funds with geographic diversification and private equity funds with jaw-dropping amounts of assets under management.

The company generates revenue from management and advisory fees, performance fees, investment income, interest, and dividend revenue and has a highly scalable business model, which is a great quality to look for in an investment. It’s also worth noting that Blackstone Group stands out thanks to its status and prestige. With a long track record of generating attractive returns for its customers across all different asset classes in various economic conditions, the company’s reputation as a global leader makes this a stock you can feel comfortable investing in for the long term.

Record-Breaking Q1 2021

Another strong reason to consider buying shares of Blackstone Group at this time is the fact that the company just posted a quarter for the record books. At the end of Q1, Blackstone Group reported Total Assets Under Management of $648.8 billion, up 21% year-over-year. This is big news because at this point the company has the most AUM in its history. More importantly, the company’s fee-earning AUM of $481.2 billion was up 14% year-over-year which bodes well for continued earnings growth. It’s worth noting that Blackstone is targeting an ambitious $1 trillion of assets under management within eight years, and it appears that the company is well on track to attain this milestone.

The company beat analyst estimates with Q1 EPS of $0.96 versus the $0.76 EPS consensus estimate and reported revenues of $5.29 billion, up 79% year-over-year. It’s also worth noting that Blackstone has $148.2 billion in total dry powder to use for future investments, which puts it in a great position to take advantage of the re-opening of the global economy. Blackstone has already acquired a major holiday park operator in Britain, a Japanese hotel portfolio, and a private aviation business ahead of the travel industry’s eventual recovery. It’s safe to say that Blackstone will continue to scoop up undervalued assets to take advantage of a rapidly changing global economy in the wake of the pandemic, which is another reason why the stock could be a big winner for the rest of the year.

Sophisticated Investing for the Little Guys

The bottom line here is that Blackstone Group stock offers retail investors a unique opportunity to gain exposure to investment vehicles that they normally would never have access to. The idea that some of the most sophisticated asset managers in the world are working hard to deliver outsized returns for your portfolio is simply too good to pass up. Just look at Blackstone’s private equity portfolio performance in Q1, which appreciated by 15.3% compared to a 5.8% increase in the benchmark S&P 500 stock index during the same period. Expect Blackstone to continue thriving in the current market environment and delivering strong results for the remainder of the year and beyond.

The stock also offers a 2.81% dividend yield and the company returned $1.0 billion to shareholders in Q1 2021. This is a company that is committed to rewarding long-term investors in multiple ways, which is another great reason to add shares for the long term. If you are interested in exposure to alternative assets and a global leader in capital markets, look no further than Blackstone Group stock.

Featured Article: What is systematic risk?


7 Cryptocurrencies That Are Leading The Market Higher

An Influx Of Capital Is Driving Cryptocurrency Higher

There is an influx of money to the cryptocurrency market that is driving the entire complex higher. Not only is institutional interest peaking but recognition and use are on the rise as well. With Bitcoin setting new all-time highs 100% above the 2017 highs the number of new Bitcoin millionaires is on the rise too.

But Bitcoin is not the only cryptocurrency on the market today by far. The number of cryptocurrencies on the market has been growing steadily with more than 4,000 listed on Coinmarketcap alone. But that doesn’t mean they are all worth your time. Many if not most will not stand the test of time.

One way to judge the market’s interest in a cryptocurrency is its market performance gains. A cryptocurrency that is gaining in value is certainly one that you may want to own. The better method of judging the market’s interest in a cryptocurrency is the market cap. The cryptocurrency market is worth upwards of $1 trillion and growing, and most of that value is centered in the top seven. Together, the bottom 3,993 odd cryptocurrencies only account for 12% of the market and have yet to prove any lasting value.

View the "7 Cryptocurrencies That Are Leading The Market Higher".


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
The Blackstone Group (BX)1.8$84.30-4.0%3.89%78.79Buy$74.73
Compare These Stocks  Add These Stocks to My Watchlist 

MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research. As a bonus to opt-ing into our email newsletters, you will also get a free subscription to the Liberty Through Wealth e-newsletter. You can opt out at any time.