In the most recent trading session Black Rock (NYSE:BLK) closed at $777.37, marking a +0.69% correction from the previous day’s close. The move outpaced the S&P 500’s daily gain of 0.11%, while the Dow posted a 0.3% decline and the tech-heavy Nasdaq gained 0.56%.
Heading into today, shares of the investment company had gained 1.06% over the past month, while the Financial sector has gained 4.44%, while the S&P 500 has gained 5.06% in that same time period.
Investors will be closely watching BlackRock’s performance in its upcoming earnings disclosure. The company is expected to report earnings of $9.96 per share, up 7.33% from the year-ago period. Meanwhile, our most recent consensus estimate is calling for revenue of $4.89 billion, up 9.66% from the year-ago period.
The Zacks Consensus Estimates are projecting earnings per share of $41.25 and revenue of $20.21 billion for the full year, which would represent increases of +9.21% and +13.19%, respectively, from the prior year.
Investors may also want to note recent changes to analyst estimates for BlackRock Inc. These revisions typically reflect the latest short-term business trends, which can change frequently, so positive estimate revisions can be interpreted as a good sign for the company’s business outlook.
Empirical research shows that these estimate revisions are directly correlated with future stock price movements, and to take advantage of this, we have developed the Zacks Rank, a proprietary model which takes these estimate revisions into account and provides an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive, outside-audited track record of outperforming expectations, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. BlackRock is currently sporting a Zacks Rank #3 (Hold).
Digging deeper into valuation, BlackRock currently has a forward P/E of 18.72. Since its peers have an average forward P/E of 10.47, one might conclude that BlackRock is trading at a relatively expensive price.
It’s also worth mentioning that BLK has a PEG ratio of 1.59. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. Financial – Investment Management was holding an average PEG ratio of 0.94 as of yesterday’s closing price.
The Finance – Investment Management industry is a part of the Finance sector. This industry is currently ranked 94 in the Zacks Industry Rank, putting it in the top 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, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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