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BlackRock (BLK) Stock Drops Despite Market Gains: Important Facts to Note

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BlackRock (BLK - Free Report) closed the latest trading day at $771.41, indicating a -1.34% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.03%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.59%.

Heading into today, shares of the investment firm had gained 2.71% over the past month, lagging the Finance sector's gain of 2.95% and the S&P 500's gain of 4.19% in that time.

Investors will be eagerly watching for the performance of BlackRock in its upcoming earnings disclosure. In that report, analysts expect BlackRock to post earnings of $9.96 per share. This would mark year-over-year growth of 7.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.89 billion, up 9.66% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $41.25 per share and revenue of $20.21 billion, which would represent changes of +9.21% and +13.19%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for BlackRock. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.14% higher. BlackRock currently has a Zacks Rank of #3 (Hold).

In the context of valuation, BlackRock is at present trading with a Forward P/E ratio of 18.95. This valuation marks a premium compared to its industry's average Forward P/E of 10.23.

Investors should also note that BLK has a PEG ratio of 1.61 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Investment Management stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.

The Financial - Investment Management industry is part of the Finance sector. With its current Zacks Industry Rank of 141, this industry ranks in the bottom 45% of all industries, numbering over 250.

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

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