BlackRock (BLK) closed at $745.22 in the latest trading session, marking a +0.27% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.23%. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, added 0.1%.
Heading into today, shares of the investment firm had gained 17.09% over the past month, outpacing the Finance sector's gain of 11.28% and the S&P 500's gain of 10.76% in that time.
BlackRock will be looking to display strength as it nears its next earnings release. On that day, BlackRock is projected to report earnings of $8.41 per share, which would represent a year-over-year decline of 23.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.52 billion, down 10.53% from the year-ago period.
BLK's full-year Zacks Consensus Estimates are calling for earnings of $33.92 per share and revenue of $18.39 billion. These results would represent year-over-year changes of -13.43% and -5.09%, respectively.
It is also important to note the recent changes to analyst estimates for BlackRock. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 past month, the Zacks Consensus EPS estimate has moved 0.53% lower. BlackRock is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, BlackRock currently has a Forward P/E ratio of 21.91. This represents a premium compared to its industry's average Forward P/E of 10.73.
Also, we should mention that BLK has a PEG ratio of 3.89. 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. The Financial - Investment Management industry currently had an average PEG ratio of 1.58 as of yesterday's close.
The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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