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Why BlackRock (BLK) Outpaced the Stock Market Today
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BlackRock (BLK - Free Report) closed at $877.94 in the latest trading session, marking a +1.27% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.16%. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq added 1.16%.
The investment firm's stock has climbed by 1.25% in the past month, falling short of the Finance sector's gain of 5.48% and the S&P 500's gain of 3.48%.
Market participants will be closely following the financial results of BlackRock in its upcoming release. The company is expected to report EPS of $10.29, down 5.68% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $5.11 billion, indicating a 13.09% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $41.34 per share and revenue of $20.14 billion. These totals would mark changes of +9.45% and +12.75%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BlackRock. Recent revisions tend to reflect the latest near-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. 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.
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, there's been a 0.06% rise in the Zacks Consensus EPS estimate. BlackRock is currently a Zacks Rank #3 (Hold).
With respect to valuation, BlackRock is currently being traded at a Forward P/E ratio of 20.97. For comparison, its industry has an average Forward P/E of 10.82, which means BlackRock is trading at a premium to the group.
Also, we should mention that BLK has a PEG ratio of 1.89. 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. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.04 based on yesterday's closing prices.
The Financial - Investment Management industry is part of the Finance sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why BlackRock (BLK) Outpaced the Stock Market Today
BlackRock (BLK - Free Report) closed at $877.94 in the latest trading session, marking a +1.27% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.16%. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq added 1.16%.
The investment firm's stock has climbed by 1.25% in the past month, falling short of the Finance sector's gain of 5.48% and the S&P 500's gain of 3.48%.
Market participants will be closely following the financial results of BlackRock in its upcoming release. The company is expected to report EPS of $10.29, down 5.68% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $5.11 billion, indicating a 13.09% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $41.34 per share and revenue of $20.14 billion. These totals would mark changes of +9.45% and +12.75%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BlackRock. Recent revisions tend to reflect the latest near-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. 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.
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, there's been a 0.06% rise in the Zacks Consensus EPS estimate. BlackRock is currently a Zacks Rank #3 (Hold).
With respect to valuation, BlackRock is currently being traded at a Forward P/E ratio of 20.97. For comparison, its industry has an average Forward P/E of 10.82, which means BlackRock is trading at a premium to the group.
Also, we should mention that BLK has a PEG ratio of 1.89. 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. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.04 based on yesterday's closing prices.
The Financial - Investment Management industry is part of the Finance sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.