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BlackRock (BLK) Gains But Lags Market: What You Should Know

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BlackRock (BLK - Free Report) closed the most recent trading day at $596.24, moving +0.35% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.4%.

Prior to today's trading, shares of the investment firm had gained 2.46% over the past month. This has lagged the Finance sector's gain of 4.26% and the S&P 500's gain of 7% in that time.

Wall Street will be looking for positivity from BLK as it approaches its next earnings report date. In that report, analysts expect BLK to post earnings of $7.36 per share. This would mark year-over-year growth of 2.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.83 billion, up 3.69% from the year-ago period.

BLK's full-year Zacks Consensus Estimates are calling for earnings of $29.45 per share and revenue of $15.17 billion. These results would represent year-over-year changes of +3.41% and +4.31%, respectively.

It is also important to note the recent changes to analyst estimates for BLK. Recent revisions tend to reflect the latest 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.74% higher. BLK is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, BLK is holding a Forward P/E ratio of 20.18. Its industry sports an average Forward P/E of 10.82, so we one might conclude that BLK is trading at a premium comparatively.

Also, we should mention that BLK has a PEG ratio of 2.02. 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 1.47 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 46, which puts it in the top 19% 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.

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