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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 $585.43, moving +1.18% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.97%. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.25%.

Prior to today's trading, shares of the investment firm had lost 13.99% over the past month. This has lagged the Finance sector's loss of 9.76% and the S&P 500's loss of 9.93% in that time.

BlackRock will be looking to display strength as it nears 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $33.92 per share and revenue of $18.39 billion, which would represent changes of -13.43% and -5.09%, respectively, from the prior year.

Investors might also notice 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 remained stagnant. BlackRock is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that BlackRock has a Forward P/E ratio of 17.06 right now. For comparison, its industry has an average Forward P/E of 8.79, which means BlackRock is trading at a premium to the group.

Investors should also note that BLK has a PEG ratio of 3.03 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 1.31 at yesterday's closing price.

The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BLK in the coming trading sessions, be sure to utilize Zacks.com.


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