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BlackRock (BLK) Gains As Market Dips: What You Should Know

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BlackRock (BLK - Free Report) closed the most recent trading day at $646.49, moving +0.19% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.27%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq gained 0.14%.

Heading into today, shares of the investment firm had lost 7.89% over the past month, lagging the Finance sector's loss of 1.83% and the S&P 500's loss of 2.86% in that time.

BlackRock will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $8.87, down 7.12% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.67 billion, up 8.38% from the year-ago period.

BLK's full-year Zacks Consensus Estimates are calling for earnings of $35.49 per share and revenue of $18.28 billion. These results would represent year-over-year changes of +0.37% and +2.28%, respectively.

Any recent changes to analyst estimates for BlackRock should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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, the Zacks Consensus EPS estimate has moved 0.05% higher. BlackRock is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note BlackRock's current valuation metrics, including its Forward P/E ratio of 18.18. Its industry sports an average Forward P/E of 11.01, so we one might conclude that BlackRock is trading at a premium comparatively.

Also, we should mention that BLK has a PEG ratio of 1.81. 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 1.33 as of yesterday's close.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


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