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BlackRock (BLK) Gains But Lags Market: What You Should Know

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In the latest trading session, BlackRock (BLK - Free Report) closed at $623.70, marking a +1.46% move from the previous day. This change lagged the S&P 500's 1.5% gain on the day. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 0.32%.

Prior to today's trading, shares of the investment firm had lost 7.2% over the past month. This has was narrower than the Finance sector's loss of 8.98% and lagged the S&P 500's loss of 6.54% in that time.

BlackRock will be looking to display strength as it nears its next earnings release, which is expected to be July 15, 2022. In that report, analysts expect BlackRock to post earnings of $9.12 per share. This would mark a year-over-year decline of 9.07%. Our most recent consensus estimate is calling for quarterly revenue of $4.85 billion, up 0.64% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $38.35 per share and revenue of $20 billion. These totals would mark changes of -2.12% and +3.25%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for BlackRock. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BlackRock is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, BlackRock is holding a Forward P/E ratio of 16.03. This represents a premium compared to its industry's average Forward P/E of 9.1.

Meanwhile, BLK's PEG ratio is currently 1.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.

The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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