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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 most recent trading day at $949.19, moving -0.24% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.9%. Elsewhere, the Dow gained 0.81%, while the tech-heavy Nasdaq added 1.22%.

The the stock of investment firm has risen by 8.54% in the past month, leading the Finance sector's gain of 0.34% and the S&P 500's gain of 3.15%.

The investment community will be paying close attention to the earnings performance of BlackRock in its upcoming release. The company is slated to reveal its earnings on October 11, 2024. In that report, analysts expect BlackRock to post earnings of $10.17 per share. This would mark a year-over-year decline of 6.78%. Meanwhile, the latest consensus estimate predicts the revenue to be $5.04 billion, indicating a 11.56% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $41.46 per share and revenue of $20.09 billion. These totals would mark changes of +9.77% and +12.51%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for BlackRock. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.31% higher. Currently, BlackRock is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, BlackRock is currently exchanging hands at a Forward P/E ratio of 22.95. This expresses a premium compared to the average Forward P/E of 11.15 of its industry.

It is also worth noting that BLK currently has a PEG ratio of 2.07. 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. BLK's industry had an average PEG ratio of 1.17 as of yesterday's close.

The Financial - Investment Management industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 37% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


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