Back to top

Image: Bigstock

BlackRock (BLK) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

BlackRock (BLK - Free Report) closed the most recent trading day at $660.10, moving -1.31% from the previous trading session. This change lagged the S&P 500's daily loss of 0.23%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.

Prior to today's trading, shares of the investment firm had lost 0.64% over the past month. This has lagged the Finance sector's gain of 0.34% and was narrower than the S&P 500's loss of 1.43% in that time.

Wall Street will be looking for positivity from BlackRock as it approaches its next earnings report date. On that day, BlackRock is projected to report earnings of $8.87 per share, which would represent a year-over-year decline of 7.12%. Our most recent consensus estimate is calling for quarterly revenue of $4.67 billion, up 8.38% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $35.49 per share and revenue of $18.28 billion. These totals would mark changes of +0.37% and +2.28%, respectively, from last year.

Any recent changes to analyst estimates for BlackRock should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 has moved 0.37% higher. BlackRock is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, BlackRock is holding a Forward P/E ratio of 18.84. For comparison, its industry has an average Forward P/E of 11.43, which means BlackRock is trading at a premium to the group.

We can also see that BLK currently has a PEG ratio of 1.87. 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. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.36 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 108, which puts it in the top 43% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

BlackRock, Inc. (BLK) - free report >>

Published in