Blackstone (BX: $33)
Bull Market Report Target Price: $36
Bull Market Report Sell Price: $31
Market Cap: $40 billion
Earnings Date: Thursday, 11:00 AM ET
Consensus: 3Q17
Revenues: $1.45 billion
EPS: $0.57
Year Ago Quarter Results
Revenues: $ 1.40 billion
EPS: $0.57
Key Things to Watch For in the Quarter
Blackstone is expected to report a 4% increase in revenues and no change in earnings per share for 3Q17. Blackstone has beaten estimates in three of the past four quarters, helping contribute to its outperformance of the Financial Services industry and 40% year-over-year appreciation. The stock yields a strong 6.5% dividend and currently trades at 14 times earnings, a fair value compared to its competitors whose average PE is around 14 as well.
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PayPal Holdings (PYPL: $69)
Bull Market Report Target Price: $66
Bull Market Report Sell Price: We would not sell PayPal
Market Cap: $82 billion
Earnings Date: Thursday, 5:00 PM ET
Consensus: 3Q17
Revenues: $3.2 billion
EPS: $0.44
Year Ago Quarter Results
Revenues: $ 2.7 billion
EPS: $0.35
Key Things to Watch For in the Quarter
Analysts expect PayPal to report a 19% increase in revenues and a 25% increase in earnings per share for 3Q17. PayPal was trading at $39 this time last year and has since posted earnings that have beaten estimates in all four quarters. Although PayPal currently trades at a PE of 55, which looks slightly overvalued, we do believe this valuation is justified. Year-over-year growth in e-commerce was 14%, 15%, and 16% in 4Q16, 1Q17 to 2Q17 respectively. This pattern of accelerated growth has moved the valuation of companies in the industry higher and PayPal is the leader, having strategically positioned itself to maintain and grow market share.