BlackRock (BLK: $538)
Earnings Date: Friday, 8:30 AM ET
Consensus: 4Q17
Revenues: $3.3 billion
EPS: $6.02
Year Ago Quarter Results
Revenues: $2.9 billion
EPS: $5.14
Key Things to Watch For in the Quarter
On average, analysts estimate that BlackRock will report a 17% increase in earnings and a 14% increase in revenue for 4Q17. Despite only beating estimates in two of the first three quarters of 2017, the stock is up over 40% since this time last year. This performance represents a 20% outperformance of the Financial Services industry. BlackRock currently trades at a PE of 24 which is relatively cheap compared to its competitors that trade around 30.
Our Target is currently $510 and as the stock as blown through this number, we hereby raise the Target to $590. And we raise our Sell Price from $370 to $470. We added the stock in August at $415 and we continue to believe that BlackRock will outperform both the overall stock market and its competitors.