Blackstone just hit the IBD 50 last week and is already forming a double-bottom base as Blackstone stock eyes a buy point of 136.56.
The alternative asset manager's shares gained 1.8% today, but it's still below its record high of 149.78.
Last week, Blackstone said distributable earnings rose 55% to a record high of $2.3 billion, or $1.71 a share, in the fourth quarter.
Analysts tracked by FactSet expected distributable earnings of $1.8 billion, or $1.45 a share. FactSet's poll of analysts expects even higher earnings of $5.35 per share for all of 2022. According to IBD data, Blackstone has a three-year EPS growth rate of 42%, lifting its IBD's EPS Rating to 85.
Blackstone stock also comes in strong with a 95 Composite Rating and a Relative Strength Rating of 96.
2022 Earnings May Benefit Blackstone Stock
Overall, Blackstone's management appeared bullish on last week's earnings call.
"It's possible as markets trade off a lot, you'll see some slowdown. But I would say overall we're continuing to see very positive momentum, and our outlook is quite good," Blackstone President Jonathan Gray said during a call with analysts last Thursday.
Last year, private equity deals and IPOs pushed global mergers and acquisition activity to record highs. An abundance of cheap capital, high corporate valuations, and an economy that began to emerge from the Covid-19 pandemic boosted the results. This year, the tone has been somewhat subdued as interest rates begin to climb, and the IPO market is not expected to be as robust.
Blackstone is an alternative asset management firm specializing in private equity, real estate, hedge funds, credit and equity and multi-asset class strategies.
Blackstone raised its quarterly dividend from $1.09 to $1.45 a share. It will be paid on Feb. 14 and would lift the dividend yield to 3.1%, which is above the industry average.
Follow Michael Molinski on Twitter @IMmolinski
