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BlackRock (BLK) Falls More Steeply Than Broader Market: What Investors Need to Know

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The most recent trading session ended with BlackRock (BLK - Free Report) standing at $800.30, reflecting a -1.42% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 1.64%.

Heading into today, shares of the investment firm had gained 7.32% over the past month, outpacing the Finance sector's gain of 5.35% and the S&P 500's gain of 4% in that time.

Market participants will be closely following the financial results of BlackRock in its upcoming release. The company plans to announce its earnings on January 12, 2024. On that day, BlackRock is projected to report earnings of $8.71 per share, which would represent a year-over-year decline of 2.46%. Alongside, our most recent consensus estimate is anticipating revenue of $4.57 billion, indicating a 5.44% upward movement from the same quarter last year.

Investors should also note any recent changes to analyst estimates for BlackRock. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. At present, BlackRock boasts a Zacks Rank of #3 (Hold).

In the context of valuation, BlackRock is at present trading with a Forward P/E ratio of 21.55. This expresses a premium compared to the average Forward P/E of 11.04 of its industry.

Also, we should mention that BLK has a PEG ratio of 2.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.

The Financial - Investment Management industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 156, positioning it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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