2024-05-21 08:30:00 ET
Summary
- I cautioned Blackstone investors to be wary about chasing BX stock in my last two articles.
- BX stock's relative underperformance has justified my caution, as it panned out as anticipated.
- Blackstone's well-diversified portfolio has several cyclical and secular growth drivers in the medium and long term.
- BX's buyers have remained resilient, suggesting the Fed could feature less prominently moving ahead.
- I explain why I've decided to turn bullish on BX, as I assess we could be at the cusp of another breakout rally.
Blackstone Stock Underperformed
Blackstone Inc. ( BX ) investors have underperformed the S&P 500 ( SPX ) ( SPY ) since BX stock staged a remarkable surge toward its December 2023 highs. While I didn't assess bearish signals on Blackstone stock's fundamental thesis and technical price action, I urged investors to be wary about chasing it further. Accordingly, I downgraded BX stock to a Hold in December 2023 and reiterated my caution on BX in early March 2024. My concerns about BX have panned out in both cases, as it underperformed the S&P 500 over the past few months. In both cases, I flagged BX's expensive valuation as one of the critical impediments toward a further valuation re-rating....
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For further details see:
Blackstone: On The Verge Of An Upside Breakout (Rating Upgrade)