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Here's Why BlackRock (BLK) Fell More Than Broader Market
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In the latest trading session, BlackRock (BLK - Free Report) closed at $990.87, marking a -2.76% move from the previous day. This change lagged the S&P 500's 0.74% loss on the day. Meanwhile, the Dow lost 1.21%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Shares of the investment firm witnessed a loss of 2.86% over the previous month, trailing the performance of the Finance sector with its gain of 1.17%, and the S&P 500's gain of 5.39%.
The investment community will be paying close attention to the earnings performance of BlackRock in its upcoming release. The company is forecasted to report an EPS of $12.53, showcasing a 3.98% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.67 billion, up 23.03% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $52.8 per share and a revenue of $27.65 billion, representing changes of +9.79% and +14.19%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for BlackRock. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. BlackRock is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, BlackRock currently has a Forward P/E ratio of 19.3. This indicates a premium in contrast to its industry's Forward P/E of 11.39.
Investors should also note that BLK has a PEG ratio of 1.33 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Financial - Investment Management industry stood at 1.09 at the close of the market yesterday.
The Financial - Investment Management industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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Here's Why BlackRock (BLK) Fell More Than Broader Market
In the latest trading session, BlackRock (BLK - Free Report) closed at $990.87, marking a -2.76% move from the previous day. This change lagged the S&P 500's 0.74% loss on the day. Meanwhile, the Dow lost 1.21%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Shares of the investment firm witnessed a loss of 2.86% over the previous month, trailing the performance of the Finance sector with its gain of 1.17%, and the S&P 500's gain of 5.39%.
The investment community will be paying close attention to the earnings performance of BlackRock in its upcoming release. The company is forecasted to report an EPS of $12.53, showcasing a 3.98% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.67 billion, up 23.03% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $52.8 per share and a revenue of $27.65 billion, representing changes of +9.79% and +14.19%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for BlackRock. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. BlackRock is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, BlackRock currently has a Forward P/E ratio of 19.3. This indicates a premium in contrast to its industry's Forward P/E of 11.39.
Investors should also note that BLK has a PEG ratio of 1.33 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Financial - Investment Management industry stood at 1.09 at the close of the market yesterday.
The Financial - Investment Management industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.