BlackRock (BLK) Outpaces Stock Market Gains: What You Should Know

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BlackRock (BLK) closed at $935.43 in the latest trading session, marking a +1.75% move from the prior day. The stock outpaced the S&P 500’s daily gain of 0.17%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.44%.

Prior to today’s trading, shares of the investment firm had lost 0.59% over the past month. This has was narrower than the Finance sector’s loss of 1.32% and lagged the S&P 500’s gain of 3.19% in that time.

Investors will be hoping for strength from BlackRock as it approaches its next earnings release. In that report, analysts expect BlackRock to post earnings of $10.13 per share. This would mark a year-over-year decline of 0.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.15 billion, up 14.93% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $38.93 per share and revenue of $19.39 billion, which would represent changes of +15.11% and +19.68%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BlackRock. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.49% higher. BlackRock currently has a Zacks Rank of #3 (Hold).

Investors should also note BlackRock’s current valuation metrics, including its Forward P/E ratio of 23.62. For comparison, its industry has an average Forward P/E of 12.42, which means BlackRock is trading at a premium to the group.

Also, we should mention that BLK has a PEG ratio of 2.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Financial – Investment Management stocks are, on average, holding a PEG ratio of 1.35 based on yesterday’s closing prices.

The Financial – Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 76, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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