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BlackRock Soars to a New 52-Week High - Analyst Blog

Posted
5/22/2013 11:29:00 AM
By: Zacks.com
Referenced Stocks:AB;BLK;GBL;IVZ

Shares of BlackRock, Inc . ( BLK ) crafted a new 52-week high, touching $293.31 at the beginning of the trading session on May 21, 2013. The closing price of this leading asset manager represents a solid year-to-date return of 38.1%. The average trading volume over the last 3 months was 0.7 million shares.

Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock has plenty of upside left given its strong estimate revisions over the last 30 days and expected year-over-year earnings growth of 17.15% for 2013.

Growth Drivers

BlackRock's acquisition spree and impressive first-quarter 2013 results - including an earnings surprise of 1.67%, a record $3.936 trillion in assets under management (up 7% year over year) and continuous capital deployment activities - have been the primary growth drivers.

Recently, BlackRock entered into a definitive agreement with MGPA, an independent private-equity property investment advisory firm, to purchase the latter. The acquisition will enable BlackRock to acquire MGPA's assets under management worth approximately $12 billion. Further, this will take the total amount invested by BlackRock in the worldwide real estate business to $25 billion.

On Apr 16, 2013, BlackRock reported first-quarter 2013 adjusted earnings of $3.65 per share, surpassing the Zacks Consensus Estimate of $3.59. The results compare favorably with the year-ago earnings of $3.16. The year-over-year improvement was primarily attributable to top-line growth, partially offset by higher operating expenses.

Alongside, the company has delivered positive earnings surprises for 4 straight quarters with an average beat of 3.75%.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate increased 0.7% to $16.03 per share. For 2014, the Zacks Consensus Estimate advanced 0.8% to $18.24 per share over the same time frame.

Other banks that are also worth considering include AllianceBernstein Holding L.P . ( AB ), GAMCO Investors, Inc . ( GBL ) and Invesco Ltd . ( IVZ ). All these carry a Zacks Rank #1 (Strong Buy).



ALLIANCEBERNSTN (AB): Free Stock Analysis Report

BLACKROCK INC (BLK): Free Stock Analysis Report

GAMCO INVESTORS (GBL): Free Stock Analysis Report

INVESCO LTD (IVZ): Free Stock Analysis Report

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