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BlackRock (BLK) Outpaces Stock Market Gains: What You Should Know
BlackRock (BLK - Free Report) closed at $648.32 in the latest trading session, marking a +0.53% move from the prior day. This change outpaced the S&P 500's 0.17% gain on the day. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.67%.
Heading into today, shares of the investment firm had lost 5.64% over the past month, outpacing the Finance sector's loss of 8.6% and lagging the S&P 500's gain of 0.25% 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 $8.04, down 15.55% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.29 billion, down 8.79% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $34.84 per share and revenue of $18.25 billion, which would represent changes of -1.47% and +2.13%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 0.02% higher. BlackRock is currently a Zacks Rank #3 (Hold).
Digging into valuation, BlackRock currently has a Forward P/E ratio of 18.51. This represents a premium compared to its industry's average Forward P/E of 10.25.
Meanwhile, BLK's PEG ratio is currently 2.15. 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 1.29 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 94, which puts it in the top 38% 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.