Benzinga - by Zacks, Benzinga Contributor.
The latest trading session saw BlackRock (NYSE: BLK) ending at $777.37, denoting a +0.69% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.11%. On the other hand, the Dow registered a loss of 0.3%, and the technology-centric Nasdaq increased by 0.56%.
Coming into today, shares of the investment firm had gained 1.06% in the past month. In that same time, the Finance sector gained 4.44%, while the S&P 500 gained 5.06%.
Investors will be eagerly watching for the performance of BlackRock in its upcoming earnings disclosure. The company's earnings per share are projected to be $9.96, reflecting a 7.33% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $4.89 billion, indicating a 9.66% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $41.25 per share and a revenue of $20.21 billion, signifying shifts of +9.21% and +13.19%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for BlackRock. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. At present, BlackRock boasts a Zacks Rank of #3 (Hold).
Digging into valuation, BlackRock currently has a Forward P/E ratio of 18.72. Its industry sports an average Forward P/E of 10.47, so one might conclude that BlackRock is trading at a premium comparatively.
Also, we should mention that BLK has a PEG ratio of 1.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial - Investment Management was holding an average PEG ratio of 0.94 at yesterday's closing price.
The Financial - Investment Management industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 38% echelons 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.
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