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Here's Why BlackRock (BLK) Gained But Lagged the Market Today

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BlackRock (BLK - Free Report) closed the latest trading day at $720.92, indicating a +0.57% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.74%. At the same time, the Dow added 0.58%, and the tech-heavy Nasdaq gained 1.13%.

Market participants will be closely following the financial results of BlackRock in its upcoming release. The company's upcoming EPS is projected at $8.73, signifying a 2.24% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $4.57 billion, showing a 5.43% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $36.44 per share and revenue of $17.8 billion, indicating changes of +3.05% and -0.41%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for BlackRock. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

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.

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 0.8% higher. BlackRock currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, BlackRock is holding a Forward P/E ratio of 19.67. This valuation marks a premium compared to its industry's average Forward P/E of 10.98.

Also, we should mention that BLK has a PEG ratio of 2.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial - Investment Management industry currently had an average PEG ratio of 1.26 as of yesterday's close.

The Financial - Investment Management industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 190, finds itself in the bottom 25% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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