Is Blackstone Stock Outperforming the S&P 500?
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Valued at a market cap of $125 billion, Blackstone Inc. (BX) is an alternative asset management firm based in New York. It specialises in private equity, real estate, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and Blackstone fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the asset management industry. The company’s key strengths are its scale and diversification, enabling it to generate stable returns across multiple asset classes and market cycles. Another strength is its deep institutional relationships with pension funds, sovereign wealth funds, and high-net-worth clients, providing a steady stream of capital.
This asset management giant is currently trading 16.7% below its 52-week high of $200.96, reached on Nov. 25, 2024. Shares of BX have soared 20.4% over the past three months, outperforming the S&P 500 Index’s ($SPX) 8% return during the same time frame.
Moreover, in the longer term, BX has rallied 21.1% over the past 52 weeks, outpacing SPX's 16.6% uptick over the same time period. However, on a YTD basis, shares of BX are down 3%, underperforming SPX’s 9.6% rise.
To confirm its bullish trend, BX has been trading above its 200-day moving average since early July, and has remained above its 50-day moving average since early May, with slight fluctuations.
On Jul. 24, Blackstone released strong Q2 results, prompting its share price to surge 3.6% in the following trading session. The company’s overall revenue improved by an impressive 32.7% year-over-year to $3.7 billion. Higher management and advisory fees, along with increased incentive fees and performance allocations, contributed to its top-line growth. Moreover, its distributable EPS of $1.21 increased 26% from the year-ago quarter and came in 9% ahead of analyst expectations, further bolstering investor confidence.
Blackstone has also outpaced its rival, Apollo Global Management, Inc. (APO), which gained 19.1% over the past 52 weeks and declined 19.7% on a YTD basis.
Looking at BX’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 22 analysts covering it, and the mean price target of $182.90 suggests a 9.3% premium to its current price levels.
On the date of publication, Neharika Jain 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.
