BlackRock (BLK) Laps the Stock Market: Here's Why

In the latest trading session, BlackRock (BLK) closed at $1,092.26, marking a +1.83% move from the previous day. This move outpaced the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.78%.

Shares of the investment firm have depreciated by 3.37% over the course of the past month, underperforming the Finance sector's loss of 1.23%, and the S&P 500's loss of 1.27%.

Analysts and investors alike will be keeping a close eye on the performance of BlackRock in its upcoming earnings disclosure. The company is expected to report EPS of $12.42, up 9.91% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $6.64 billion, reflecting a 25.76% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $53.64 per share and a revenue of $27.89 billion, signifying shifts of +11.54% and +15.18%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for BlackRock. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. At present, BlackRock boasts a Zacks Rank of #3 (Hold).

Investors should also note BlackRock's current valuation metrics, including its Forward P/E ratio of 20. This valuation marks a premium compared to its industry average Forward P/E of 10.95.

We can also see that BLK currently has a PEG ratio of 1.34. 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 average PEG ratio for the Financial - Investment Management industry stood at 0.97 at the close of the market yesterday.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.