BlackRock (BLK) Stock Sinks As Market Gains: What You Should Know

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BlackRock (BLK) closed at $582.26 in the latest trading session, marking a -0.6% move from the prior day. This change lagged the S&P 500’s 0.22% gain on the day. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.22%.

Coming into today, shares of the investment firm had lost 3.03% in the past month. In that same time, the Finance sector lost 9.02%, while the S&P 500 lost 10.02%.

Investors will be hoping for strength from BlackRock as it approaches its next earnings release. In that report, analysts expect BlackRock to post earnings of $9.12 per share. This would mark a year-over-year decline of 9.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.85 billion, up 0.64% from the year-ago period.

BLK’s full-year Zacks Consensus Estimates are calling for earnings of $38.35 per share and revenue of $20 billion. These results would represent year-over-year changes of -2.12% and +3.25%, respectively.

Investors should also note any recent changes to analyst estimates for BlackRock. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.6% lower. BlackRock is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, BlackRock is currently trading at a Forward P/E ratio of 15.18. This valuation marks a premium compared to its industry’s average Forward P/E of 8.86.

Also, we should mention that BLK has a PEG ratio of 1.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Financial – Investment Management was holding an average PEG ratio of 1.08 at yesterday’s closing price.

The Financial – Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 218, putting it in the bottom 14% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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