BlackRock (BLK) Ascends But Remains Behind Market: Some Facts to Note

BlackRock (BLK) closed at $981.32 in the latest trading session, marking a +1.88% move from the prior day. The stock lagged the S&P 500's daily gain of 2.05%. At the same time, the Dow added 1.78%, and the tech-heavy Nasdaq gained 2.47%.

The the stock of investment firm has risen by 5.41% in the past month, leading the Finance sector's gain of 3.67% and the S&P 500's gain of 5.21%.

The upcoming earnings release of BlackRock will be of great interest to investors. On that day, BlackRock is projected to report earnings of $10.50 per share, which would represent year-over-year growth of 1.35%. Our most recent consensus estimate is calling for quarterly revenue of $5.37 billion, up 11.83% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $44.87 per share and revenue of $22.53 billion, indicating changes of +2.89% and +10.4%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for BlackRock. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 0.77% fall in the Zacks Consensus EPS estimate. BlackRock is currently a Zacks Rank #4 (Sell).

Digging into valuation, BlackRock currently has a Forward P/E ratio of 21.47. This indicates a premium in contrast to its industry's Forward P/E of 10.69.

We can also see that BLK currently has a PEG ratio of 2.93. 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. As the market closed yesterday, the Financial - Investment Management industry was having an average PEG ratio of 1.27.

The Financial - Investment Management industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 223, placing it within the bottom 10% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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