In the latest close session, BlackRock (BLK) was up +2.07% at $943.26. The stock’s change was more than the S&P 500’s daily gain of 1.01%. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 1.22%.
The stock of investment firm has fallen by 13.76% in the past month, lagging the Finance sector’s loss of 6.24% and the S&P 500’s loss of 2.86%.
The investment community will be closely monitoring the performance of BlackRock in its forthcoming earnings report. The company’s earnings per share (EPS) are projected to be $12.36, reflecting a 9.38% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.6 billion, up 25.04% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $53.64 per share and revenue of $27.91 billion. These totals would mark changes of +11.54% and +15.25%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for BlackRock. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0% lower. BlackRock currently has a Zacks Rank of #3 (Hold).
With respect to valuation, BlackRock is currently being traded at a Forward P/E ratio of 17.23. For comparison, its industry has an average Forward P/E of 9.56, which means BlackRock is trading at a premium to the group.
Investors should also note that BLK has a PEG ratio of 1.18 right now. 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. BLK’s industry had an average PEG ratio of 0.79 as of yesterday’s close.
The Financial – Investment Management industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 188, placing it within the bottom 24% of over 250 industries.
