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BlackRock (BLK) Registers a Bigger Fall Than the Market: Important Facts to Note

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BlackRock (BLK - Free Report) closed at $825.16 in the latest trading session, marking a -1.31% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw a decrease of 0.41%.

Shares of the investment firm have appreciated by 4.88% over the course of the past month, underperforming the Finance sector's gain of 4.89% and outperforming the S&P 500's gain of 2.7%.

Analysts and investors alike will be keeping a close eye on the performance of BlackRock in its upcoming earnings disclosure. In that report, analysts expect BlackRock to post earnings of $9.23 per share. This would mark year-over-year growth of 16.39%. Alongside, our most recent consensus estimate is anticipating revenue of $4.65 billion, indicating a 9.71% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $39.73 per share and revenue of $20 billion, which would represent changes of +5.19% and +11.97%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.23% higher. At present, BlackRock boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, BlackRock is currently exchanging hands at a Forward P/E ratio of 21.05. This expresses a premium compared to the average Forward P/E of 11.19 of its industry.

It's also important to note that BLK currently trades at a PEG ratio of 1.84. 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. BLK's industry had an average PEG ratio of 0.89 as of yesterday's close.

The Financial - Investment Management industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 28, positioning it in the top 12% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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