Yahoo Finance BlackRock (BLK) Dips More Than Broader Markets: What You Should Know
In the latest trading session, BlackRock (BLK) closed at $600.50, marking a -1.25% move from the previous day. This change lagged the S&P 500's 0.84% loss on the day. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Heading into today, shares of the investment firm had lost 13.18% over the past month, lagging the Finance sector's loss of 7.97% and the S&P 500's loss of 10.24% in that time.
BlackRock will be looking to display strength as it nears its next earnings release. In that report, analysts expect BlackRock to post earnings of $8.41 per share. This would mark a year-over-year decline of 23.2%. Meanwhile, our latest consensus estimate is calling for revenue of $4.52 billion, down 10.53% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $33.92 per share and revenue of $18.39 billion, which would represent changes of -13.43% and -5.09%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BlackRock. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BlackRock currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, BlackRock is holding a Forward P/E ratio of 17.93. Its industry sports an average Forward P/E of 9.39, so we one might conclude that BlackRock is trading at a premium comparatively.
It is also worth noting that BLK currently has a PEG ratio of 3.19. 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. BLK's industry had an average PEG ratio of 1.4 as of yesterday's close.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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