BlackRock (BLK) ended the recent trading session at $870.21, representing a slight decline of 0.26% from its previous closing price. While the stock experienced a small dip, it outperformed the overall market, as the S&P 500 gained 0.97% on the day. The Dow Jones Industrial Average rose 0.58%, and the tech-heavy Nasdaq Composite climbed 1.39%. Looking at the broader picture, BlackRock shares have demonstrated impressive growth over the past month, gaining 5.03%. This gain significantly surpasses the 0.47% loss experienced by the Finance sector and the 1.85% decline in the S&P 500 during the same period.
As BlackRock prepares for its upcoming earnings disclosure, analysts and investors will be keenly watching for key indicators of future performance. The company’s projected earnings per share (EPS) for the quarter stands at $10.27, representing a 5.87% decrease compared to the same period last year. In terms of revenue, analysts anticipate net sales of $5.12 billion, indicating a 13.15% increase year-over-year. Looking further ahead, BlackRock’s full-year Zacks Consensus Estimates predict earnings of $41.34 per share and revenue of $20.14 billion, reflecting year-over-year changes of +9.45% and +12.77%, respectively.
It’s crucial to monitor adjustments made to analyst estimates for BlackRock, as these revisions provide insights into the evolving nature of short-term business trends. Positive changes in estimates signal analyst optimism about the company’s business prospects and profitability. Research suggests that these estimate adjustments have a direct correlation with future stock price performance. The Zacks Rank, a proprietary model that incorporates these estimate changes, offers a functional rating system for assessing stock potential. The Zacks Rank, ranging from #1 (Strong Buy) to #5 (Strong Sell), has a proven track record of outperformance, verified by external audits. Historically, #1 ranked stocks have yielded an average annual return of +25% since 1988. Within the past 30 days, the consensus EPS projection for BlackRock has increased by 0.28%. Currently, BlackRock holds a Zacks Rank of #3 (Hold).
Investors should also consider BlackRock’s current valuation metrics, including its Forward P/E ratio of 21.11. This indicates a premium compared to the industry’s Forward P/E of 10.61. BlackRock’s PEG ratio currently stands at 1.93. The PEG ratio, similar to the widely used P/E ratio, incorporates the company’s anticipated earnings growth rate. The average PEG ratio for the Financial – Investment Management industry stood at 1.07 at the market’s close yesterday. The Financial – Investment Management industry belongs to the Finance sector. Currently, this industry has a Zacks Industry Rank of 171, placing it within the bottom 33% of over 250 industries. The Zacks Industry Rank measures the strength of industry groups by evaluating the average Zacks Rank of individual stocks within those groups. Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
