Back to top

Image: Bigstock

BlackRock (BLK) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

BlackRock (BLK - Free Report) closed at $414 in the latest trading session, marking a -1.75% move from the prior day. This change lagged the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.65%.

Prior to today's trading, shares of the investment firm had gained 0.89% over the past month. This has outpaced the Finance sector's loss of 2.04% and the S&P 500's loss of 2.56% in that time.

Investors will be hoping for strength from BLK as it approaches its next earnings release, which is expected to be January 11, 2019. On that day, BLK is projected to report earnings of $7.03 per share, which would represent year-over-year growth of 12.66%. Meanwhile, our latest consensus estimate is calling for revenue of $3.70 billion, up 6.75% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $27.71 per share and revenue of $14.48 billion, which would represent changes of +22.61% and +15.96%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BLK. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.07% lower within the past month. BLK is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that BLK has a Forward P/E ratio of 15.21 right now. Its industry sports an average Forward P/E of 10.99, so we one might conclude that BLK is trading at a premium comparatively.

Investors should also note that BLK has a PEG ratio of 1.26 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. Financial - Investment Management stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 38% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


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


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

Published in