BlackRock (BLK) Outperforms Broader Market: What You Need to Know

In the latest trading session, BlackRock (BLK) closed at $1,088.21, marking a +2.64% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.52%.

Heading into today, shares of the investment firm had gained 4.48% over the past month, lagging the Finance sector's gain of 4.92% and outpacing the S&P 500's gain of 3%.

Market participants will be closely following the financial results of BlackRock in its upcoming release. The company is predicted to post an EPS of $12.55, indicating a 5.2% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.75 billion, up 18.82% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $47.51 per share and a revenue of $23.97 billion, demonstrating changes of +8.94% and +17.48%, respectively, from the preceding year.

Any recent changes to analyst estimates for BlackRock should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.5% lower. BlackRock currently has a Zacks Rank of #3 (Hold).

Digging into valuation, BlackRock currently has a Forward P/E ratio of 22.31. This denotes a premium relative to the industry average Forward P/E of 12.65.

We can additionally observe that BLK currently boasts a PEG ratio of 1.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Financial - Investment Management industry held an average PEG ratio of 1.29.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 35% of all 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.

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

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