BlackRock (BLK) Gains As Market Dips: What You Should Know
In the latest trading session, BlackRock (BLK) closed at $661.63, marking a +0.54% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq added 0.1%.
Heading into today, shares of the investment firm had lost 5.49% over the past month, lagging the Finance sector's loss of 3.73% and the S&P 500's loss of 5.13% in that time.
Investors will be hoping for strength from BlackRock as it approaches its next earnings release. The company is expected to report EPS of $8.41, down 23.2% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.52 billion, down 10.53% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $33.92 per share and revenue of $18.39 billion. These totals would mark changes of -13.43% and -5.09%, respectively, from last year.
Any recent changes to analyst estimates for BlackRock should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. BlackRock is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, BlackRock currently has a Forward P/E ratio of 19.4. For comparison, its industry has an average Forward P/E of 9.67, which means BlackRock is trading at a premium to the group.
Meanwhile, BLK's PEG ratio is currently 3.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.
The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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