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

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BlackRock (BLK) closed at $626.60 in the latest trading session, marking a +1.33% move from the prior day. This change outpaced the S&P 500's 0.95% gain on the day. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.04%.

Prior to today's trading, shares of the investment firm had lost 4.44% over the past month. This has was narrower than the Finance sector's loss of 6.49% and the S&P 500's loss of 7.49% in that time.

Wall Street will be looking for positivity from BlackRock as it approaches its next earnings report date. The company is expected to report EPS of $9.26, down 7.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.91 billion, up 1.93% from the year-ago period.

BLK's full-year Zacks Consensus Estimates are calling for earnings of $38.68 per share and revenue of $20.15 billion. These results would represent year-over-year changes of -1.28% and +4.02%, respectively.

It is also important to note the recent changes to analyst estimates for BlackRock. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.91% lower. 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 15.99. This valuation marks a premium compared to its industry's average Forward P/E of 9.47.

Investors should also note that BLK has a PEG ratio of 1.96 right now. 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. The Financial - Investment Management was holding an average PEG ratio of 1.19 at yesterday's closing price.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 231, which puts it in the bottom 9% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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