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

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BlackRock (BLK) closed at $616.70 in the latest trading session, marking a +1.26% move from the prior day. This change outpaced the S&P 500's 1.06% gain on the day. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.55%.

Coming into today, shares of the investment firm had lost 11.28% in the past month. In that same time, the Finance sector lost 9.62%, while the S&P 500 lost 8.3%.

BlackRock will be looking to display strength as it nears its next earnings release, which is expected to be July 15, 2022. The company is expected to report EPS of $8.92, down 11.07% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.85 billion, up 0.64% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $38.35 per share and revenue of $20 billion. These totals would mark changes of -2.12% and +3.25%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for BlackRock. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BlackRock currently has a Zacks Rank of #4 (Sell).

Digging into valuation, BlackRock currently has a Forward P/E ratio of 15.88. This valuation marks a premium compared to its industry's average Forward P/E of 9.11.

Meanwhile, BLK's PEG ratio is currently 1.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BLK's industry had an average PEG ratio of 1.1 as of yesterday's close.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 14% 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.

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


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