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Why Hold Strategy is Apt for BlackRock (BLK) Stock Now?
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BlackRock, Inc. (BLK - Free Report) remains well positioned to grow inorganically with the help of a solid liquidity position. Also, the company’s restructuring initiatives are expected to aid top-line growth in the upcoming quarters.
However, the company’s rising expenses might curb profitability growth. Also, its high dependence on overseas revenues remains a concern.
The company did not witness any earnings estimate revision for the current year over the past 30 days. As a result, its Zacks Consensus Estimate remained stable at $21.98. Thus, the stock currently carries a Zacks Rank #3 (Hold).
Looking at the fundamentals, the company’s revenues have increased at a five-year (2012-2016) CAGR of 4.5%. Given the company’s strong global presence, its initiatives to strengthen the iShares and ETF operations to meet the changing needs of clients are expected to further support revenues generation in the future.
Also, the company has been focusing on strategic acquisitions. Acquisitions have helped its assets under management (AUM) to grow at a five-year (2012-2016) CAGR of 7.9%.
Further, the company has an efficient share repurchase and dividend payment policy in place. Supported by a solid capital position, it should continue enhancing shareholder value through efficient capital deployment activities.
However, its expenses have increased at a CAGR of 3.2% over the last five years (as of the end of 2016). Persistently rising expenses, primarily due to higher compensation and marketing costs, are expected to hamper bottom-line growth.
Also, almost one-third of the company’s revenues are derived from overseas markets. Its dependence on overseas revenues has been gradually increasing, which makes it prone to various regulatory and political risks, and the negative impact of foreign exchange fluctuations.
BlackRock’s shares have gained 10.8% so far this year, underperforming the 16.5% growth for the industry it belongs to. Given the concerns, the stock’s movement is expected to be range-bound in the near term.
Mentioned below are a few better-ranked stocks from the same space.
Cohen & Steers, Inc. (CNS - Free Report) has witnessed an upward earnings estimate revision of 3.6% for the current year over the past 60 days. Its share price has increased 15.5% so far this year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ameriprise Financial, Inc.’s (AMP - Free Report) Zacks Consensus Estimate for the current year has been revised nearly 4% upward over the past 60 days. Its shares have gained 25.1% year to date. It carries a Zacks Rank #2 (Buy).
SEI Investments Co. (SEIC - Free Report) also carries a Zacks Rank #2. The stock has witnessed an upward earnings estimate revision of 1.3% for the current year over the past 60 days and rallied 15.3% year to date.
4 Surprising Tech Stocks to Keep an Eye on
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really takes off.
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Why Hold Strategy is Apt for BlackRock (BLK) Stock Now?
BlackRock, Inc. (BLK - Free Report) remains well positioned to grow inorganically with the help of a solid liquidity position. Also, the company’s restructuring initiatives are expected to aid top-line growth in the upcoming quarters.
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However, the company’s rising expenses might curb profitability growth. Also, its high dependence on overseas revenues remains a concern.
The company did not witness any earnings estimate revision for the current year over the past 30 days. As a result, its Zacks Consensus Estimate remained stable at $21.98. Thus, the stock currently carries a Zacks Rank #3 (Hold).
Looking at the fundamentals, the company’s revenues have increased at a five-year (2012-2016) CAGR of 4.5%. Given the company’s strong global presence, its initiatives to strengthen the iShares and ETF operations to meet the changing needs of clients are expected to further support revenues generation in the future.
Also, the company has been focusing on strategic acquisitions. Acquisitions have helped its assets under management (AUM) to grow at a five-year (2012-2016) CAGR of 7.9%.
Further, the company has an efficient share repurchase and dividend payment policy in place. Supported by a solid capital position, it should continue enhancing shareholder value through efficient capital deployment activities.
However, its expenses have increased at a CAGR of 3.2% over the last five years (as of the end of 2016). Persistently rising expenses, primarily due to higher compensation and marketing costs, are expected to hamper bottom-line growth.
Also, almost one-third of the company’s revenues are derived from overseas markets. Its dependence on overseas revenues has been gradually increasing, which makes it prone to various regulatory and political risks, and the negative impact of foreign exchange fluctuations.
BlackRock’s shares have gained 10.8% so far this year, underperforming the 16.5% growth for the industry it belongs to. Given the concerns, the stock’s movement is expected to be range-bound in the near term.
Mentioned below are a few better-ranked stocks from the same space.
Cohen & Steers, Inc. (CNS - Free Report) has witnessed an upward earnings estimate revision of 3.6% for the current year over the past 60 days. Its share price has increased 15.5% so far this year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ameriprise Financial, Inc.’s (AMP - Free Report) Zacks Consensus Estimate for the current year has been revised nearly 4% upward over the past 60 days. Its shares have gained 25.1% year to date. It carries a Zacks Rank #2 (Buy).
SEI Investments Co. (SEIC - Free Report) also carries a Zacks Rank #2. The stock has witnessed an upward earnings estimate revision of 1.3% for the current year over the past 60 days and rallied 15.3% year to date.
4 Surprising Tech Stocks to Keep an Eye on
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really takes off.
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