In the latest trading session, BlackRock (BLK) closed at $910.37, marking a -0.53% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.76% for the day. Elsewhere, the Dow saw a downswing of 1.14%, while the tech-heavy Nasdaq depreciated by 0.18%.
Heading into today, shares of the investment firm had lost 7.13% over the past month, lagging the Finance sector's loss of 5.26% and outpacing the S&P 500's loss of 7.29% in that time.
Analysts and investors alike will be keeping a close eye on the performance of BlackRock in its upcoming earnings disclosure. The company is forecasted to report an EPS of $10.84, showcasing a 10.5% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $5.49 billion, indicating a 16.04% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $47.41 per share and a revenue of $23.66 billion, representing changes of +8.71% and +15.95%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for BlackRock. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. BlackRock currently has a Zacks Rank of #3 (Hold).
In terms of valuation, BlackRock is currently trading at a Forward P/E ratio of 19.3. This represents a premium compared to its industry's average Forward P/E of 9.42.
Also, we should mention that BLK has a PEG ratio of 1.76. 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. The average PEG ratio for the Financial - Investment Management industry stood at 0.93 at the close of the market yesterday.
The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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