Back to top

Image: Bigstock

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

Read MoreHide Full Article

BlackRock (BLK - Free Report) closed the most recent trading day at $691.14, moving +0.43% from the previous trading session. This change lagged the S&P 500's 1.23% gain on the day. At the same time, the Dow added 0.84%, and the tech-heavy Nasdaq lost 2.24%.

Prior to today's trading, shares of the investment firm had gained 2.9% over the past month. This has lagged the Finance sector's gain of 4.74% and the S&P 500's gain of 4.67% in that time.

Investors will be hoping for strength from BlackRock as it approaches its next earnings release, which is expected to be July 14, 2023. The company is expected to report EPS of $8.54, up 16.03% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.48 billion, down 0.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $34.29 per share and revenue of $18.16 billion, which would represent changes of -3.03% and +1.61%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for BlackRock. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. BlackRock is currently a Zacks Rank #4 (Sell).

Investors should also note BlackRock's current valuation metrics, including its Forward P/E ratio of 20.07. Its industry sports an average Forward P/E of 11.34, so we one might conclude that BlackRock is trading at a premium comparatively.

Investors should also note that BLK has a PEG ratio of 2.1 right now. 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. The Financial - Investment Management was holding an average PEG ratio of 1.39 at yesterday's closing price.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 33% 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BlackRock, Inc. (BLK) - free report >>

Published in