S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20

Blackstone (NYSE:BX) Stock a Buy After an Impressive Q3

Friday, October 22, 2021 | Sean Sechler
Blackstone (NYSE:BX) Stock a Buy After an Impressive Q3Private equity firms like Blackstone (NYSE:BX) have been thriving recently, especially since so many wealthy investors are looking to take advantage of alternative investments in a low-interest-rate environment. This has led to massive inflows and plenty of new capital available for the company to put to work, evident in the fact that Blackstone deployed more than $37 billion last quarter and has made a record amount of total new investments for the year at this time.

If you aren’t familiar with alternative investments, it’s a term that refers to financial assets that don’t fall under the conventional categories like stocks, bonds, and cash. They can include private equity, hedge funds, venture capital, real estate, and derivatives contracts, which are investments that are typically intended for institutional or accredited investors and can be difficult for many retail investors to access. Since Blackstone is the world’s leading alternative asset manager, it’s a great way to explore adding exposure to these incredibly lucrative investment opportunities.

Here are a few reasons why Blackstone stock is a buy at this time:

Yet Another Record Quarter

With so much uncertainty regarding this round of earnings season and how different companies are being affected by factors such as supply chain bottlenecks, it’s great to see Blackstone deliver another record quarter. The company’s Q3 report continues a stellar year for the New York-based private equity firm and should give investors plenty of confidence that the company is heading in the right direction going forward. Blackstone’s Q3 distributable earnings, which is a measure of the company’s income that can be returned to shareholders, jumped to an all-time high of $1.64 billion, up 108% year-over-year. The company was able to deliver such strong earnings thanks to record management fee revenues and realized performance fees from several asset sales.

Blackstone CEO Stephen Schwarzman stated “Today, Blackstone reported the best results in our 36-year history. Earnings increased dramatically, and all of our key financial and capital metrics reached record or near-record levels.” With this kind of performance, it’s easy to understand why the stock has rallied over 104% year-to-date. Investors should expect more of the same from Blackstone going forward, particularly since the company continues to aggressively pursue deals in high-growth areas like IT services, logistics warehouses, and software.

Let’s Make a Deal

Adding shares of Blackstone essentially means you have a team of financial experts hunting down undervalued assets and making deals to generate returns for your portfolio. The company is known for delivering excess returns and has been spending big recently, which could mean strong earnings growth over the next few years. Look no further than the company’s recent sale of The Cosmopolitan hotel and casino in Las Vegas for $5.65 billion, which was the firm’s most profitable single-asset deal ever, for proof of Blackstone’s world-class deal-making abilities.

Other deals during Q3 included a $5 billion deal to purchase Chamberlain Group LLC, which is the manufacturer of LiftMaster garage-door openers, a move to purchase data-center operator QTS Realty Trust, and acquisitions of Home Partners of America and CityCenter Las Vegas. Blackstone also recently announced that it is buying a majority stake in womenswear brand Spanx, rounding out a diverse list of recent deals. There aren’t many companies out there that can offer this type of business expertise and exposure to so many different industries, which is a strong reason why Blackstone is worth a look.

Huge Inflows Point Towards Strong Demand

Blackstone reported another big jump in assets under management in Q3, as the company saw inflows of $46.7 billion during the quarter. The company’s total AUM increased to $730.7 billion, up 25% year-over-year, and confirms that investors are counting on Blackstone to generate outsized returns with interest rates near 0. If so many wealthy investors are looking to park their capital with Blackstone, shouldn’t retail investors be interested as well?

It’s also worth noting that Blackstone is benefitting from strong investor demand thanks to its insurance deals, which can generate more earnings over the long term since they aren’t market-dependent. There’s also a lot to like about how the firm’s private equity fund has performed, as it returned 9.9% in Q3 versus a 0.23% return from the S&P 500 index during the same period. With so many things working in Blackstone’s favor at this time and plenty of demand for alternative investment vehicles, adding shares after the company's latest earnings release makes a lot of sense.

Should you invest $1,000 in BlueLinx right now?

Before you consider BlueLinx, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and BlueLinx wasn't on the list.

While BlueLinx currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

 


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
BlueLinx (BXC)2.0$70.11-5.7%N/A2.84Buy$80.00
Compare These Stocks  Add These Stocks to My Watchlist 

Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
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.