Back to top

Analyst Blog

Shares of BlackRock, Inc. (BLK - Analyst Report) crafted a new 52-week high, touching $293.31 at the beginning of the trading session on May 21, 2013. The closing price of this leading asset manager represents a solid year-to-date return of 38.1%. The average trading volume over the last 3 months was 0.7 million shares.

Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock has plenty of upside left given its strong estimate revisions over the last 30 days and expected year-over-year earnings growth of 17.15% for 2013.

Growth Drivers

BlackRock’s acquisition spree and impressive first-quarter 2013 results - including an earnings surprise of 1.67%, a record $3.936 trillion in assets under management (up 7% year over year) and continuous capital deployment activities – have been the primary growth drivers.

Recently, BlackRock entered into a definitive agreement with MGPA, an independent private-equity property investment advisory firm, to purchase the latter. The acquisition will enable BlackRock to acquire MGPA’s assets under management worth approximately $12 billion. Further, this will take the total amount invested by BlackRock in the worldwide real estate business to $25 billion.

On Apr 16, 2013, BlackRock reported first-quarter 2013 adjusted earnings of $3.65 per share, surpassing the Zacks Consensus Estimate of $3.59. The results compare favorably with the year-ago earnings of $3.16. The year-over-year improvement was primarily attributable to top-line growth, partially offset by higher operating expenses.

Alongside, the company has delivered positive earnings surprises for 4 straight quarters with an average beat of 3.75%.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate increased 0.7% to $16.03 per share. For 2014, the Zacks Consensus Estimate advanced 0.8% to $18.24 per share over the same time frame.

Other banks that are also worth considering include AllianceBernstein Holding L.P. (AB - Snapshot Report), GAMCO Investors, Inc. (GBL - Snapshot Report) and Invesco Ltd. (IVZ - Analyst Report). All these carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
HI CRUSH PA… HCLP 68.05 +4.74%
CTPARTNERS… CTP 12.91 +3.12%
QIHOO 360 T… QIHU 90.56 +3.11%
HOLLYSYS AU… HOLI 22.85 +2.97%
BONANZA CRE… BCEI 61.57 +2.94%