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BlackRock Finance (BLK) Increases Yet Falls Behind Market: What Investors Need to Know

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BlackRock Finance (BLK - Free Report) closed the most recent trading day at $1,049.97, moving +0.25% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.39%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.6%.

The the stock of investment firm has risen by 4.01% in the past month, leading the Finance sector's gain of 3.06% and the S&P 500's gain of 1.06%.

Market participants will be closely following the financial results of BlackRock Finance in its upcoming release. The company is forecasted to report an EPS of $11.55, showcasing a 19.57% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.6 billion, up 20.92% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $43.17 per share and a revenue of $20.33 billion, indicating changes of +14.3% and +13.84%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for BlackRock Finance. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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.

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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.41% increase. BlackRock Finance is currently a Zacks Rank #1 (Strong Buy).

Looking at valuation, BlackRock Finance is presently trading at a Forward P/E ratio of 24.26. This indicates a premium in contrast to its industry's Forward P/E of 12.21.

Meanwhile, BLK's PEG ratio is currently 1.87. 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 1.33 based on yesterday's closing prices.

The Financial - Investment Management industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 21, finds itself in the top 9% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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