BlackRock Crafts 52-Week High - Analyst Blog


Shares of BlackRock, Inc. ( BLK ) reached a new 52-week high, touching $323.00 at the beginning of the trading session on Dec 26, 2013. The closing price of this leading asset manager marked a solid year-to-date return of 52.0%. The average trading volume over the last 3 months was 0.6 million shares.

Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its strong estimate revisions over the last 60 days and expected year-over-year earnings growth of 10.7% for 2013.

Growth Drivers

BlackRock's impressive third-quarter 2013 results, a record $4.10 trillion in assets under management (up 12% year over year) and continuous capital deployment activities were the primary factors that boosted the stock price.  

On Oct 16, 2013, BlackRock reported third-quarter 2013 adjusted earnings of $3.88 per share, in line with the Zacks Consensus Estimate but up 12% from the prior-year quarter figure. Results benefited from increased revenues, partly offset by higher operating expenses. Further, significant growth in assets under management (AUM) was a tailwind.

Alongside, the company has delivered positive earnings surprises in 3 out of the past 4 quarters with an average beat of 5.40%.

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate rose 0.2% to $16.06 per share. For 2014, the Zacks Consensus Estimate advanced 0.5% to $18.94 per share over the same time frame.

However, some better-ranked investment management firms include Waddell & Reed Financial, Inc. ( WDR ), GAMCO Investors, Inc. ( GBL ) and Lazard Ltd. ( LAZ ). All these stocks carry a Zacks Rank #1 (Strong Buy).

BLACKROCK INC (BLK): Free Stock Analysis Report

GAMCO INVESTORS (GBL): Free Stock Analysis Report

LAZARD LTD (LAZ): Free Stock Analysis Report

WADDELL&REED -A (WDR): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BLK , GBL , LAZ , WDR

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