Asset management firm Blackstone, the IBD Stock of the Day, is near a buy point and already has reached an early entry.
Blackstone is the world's largest alternative asset manager, with $1.2 trillion in assets under management, an increase of 13% in the second quarter year over year. Its services include managing some of the largest institutional funds, including endowments, sovereign wealth funds and pension funds. Its retail products include mutual funds, ETFs and closed-end funds.
Like so many others, the company is trying to take advantage of artificial intelligence. Last week, it agreed to acquire Enverus from Friedman and Genstar Capital. The companies didn't disclose terms.
Enverus is the largest cloud-software and analytics company serving the energy industry. The global firm provides analytics and data from generative AI and partnerships with most of the U.S. energy producers and suppliers, Blackstone said.
The New York-based firm cited strong growth in multiple business areas in its most recent earnings report, which beat analysts' expectations. The firm said its deft handling of the tariff-related market turmoil in April contributed to the strong quarter. About eight analysts raised their price targets after the report.
Executives gave upbeat comments on the company's outlook, painting "a very positive multiyear picture for the firm," said CFO Michael Chae.
Blackstone's three-year EPS growth rate is 17%, although EPS grew an average 29.8% the past three quarters, according to IBD Stock Checkup. Its three-year sales growth rate is 9%.
The stock has a Composite Rating of 94.
Blackstone Stock Analysis
Blackstone stock is forming a cup-with-handle base with a 181.32 buy point, according to MarketSurge pattern recognition. On Tuesday, the stock climbed above a trendline over the handle's highs, creating an early entry around 171.
The base's depth of 42% is deeper than normal. Price and volume indicators, however, are favorable. The Accumulation/Distribution Rating is B+. The stock is up only 2% year to date, but up more than 50% from the April 7 low.
Blackstone stock has a 21-day average true range (ATR) of 2.69%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks with a high ATR tend to make large price moves that can trigger sell rules. Stocks with lower ATRs tend to make more incremental moves.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
