Credit: Shutterstock photoShares 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
