BlackRock’s Analyst Ratings Suggest Relative Outperformance
In April 2017, ten out of the 14 analysts (or ~71.4%) covering BlackRock (BLK) have rated it as a “buy” or a “hold.” The stock’s mean price target has risen marginally to $432.91 per share.
BlackRock (BLK) continues to command a premium compared to other traditional asset managers due to its scale, operating performance, and ETF expansion.
BlackRock’s (BLK) institutional AUM (assets under management) totaled ~$3.1 trillion on March 31, 2017. Institutional AUM made up 56% of the company’s total AUM.
BlackRock (BLK) rewards its shareholders with dividends and repurchases in line with its performance. In 1Q17, BlackRock declared a total dividend of $2.50, a 9% rise over the prior year’s quarter.
In its 1Q17 earnings release on April 19, 2017, BlackRock (BLK) reported an 8% rise in total revenue on a YoY (year-over-year) basis.
BlackRock’s (BLK) iShares saw continued strength in 1Q17, with the division witnessing strong flows toward asset classes inside and outside of the United States.
BlackRock (BLK), the world’s largest asset manager, reported its 1Q17 earnings on April 19, 2017. The company beat Wall Street analysts’ adjusted EPS (earnings per share) estimate of $4.89.
The Dow Jones Industrial Average closed at 20,578.71. Like the S&P 500 and Dow Jones, the NASDAQ Composite Index closed positive on Thursday.
The market has shown strong movement since the US elections in November 2016. The bulls have entered the market and driven market sentiment.
Gross has suggested some short-term duration investment products since he believes economic growth may not reach the level of investor expectation.
In his investment outlook for April, Gross questioned whether Trump’s economic agenda could create a 3.0% growth in the economy.
Bill Gross believes that going forward, we may see a dovish Fed under the Trump presidency.
Investors generally invest in high-yield bonds (BND) when there are expectations for higher growth in the economy.
On Thursday, April 13, 2017, in an interview with CNBC’s Power Lunch, billionaire investor and bond guru Bill Gross discussed his view on the equity market.
The S&P 500 weakened and fell lower on Wednesday. Weakness in the energy, financials, and utility sectors weighed on the market.
In April 2017, 15 of the 30 analysts covering Goldman Sachs (GS) stock (~50%) gave it “buy” or “strong buy” ratings, while 12 analysts have given it “hold” ratings.
GS stock has risen by 25% over the past six months and 57% over the past year, reflecting strong investment banking and institutional services revenues.
Goldman Sachs’s investment banking division posted revenues of $1.7 billion in 1Q17, representing a growth of 16% YoY on higher equity underwriting revenues.
Goldman Sachs (GS) saw revenues of nearly $1.5 billion in its Investing and Lending division—far higher than in 1Q16 and similar to 4Q16.
Goldman Sachs (GS) reported 1Q17 EPS of $5.15, which was lower than consensus estimates of $5.31 and higher than its 1Q16 EPS of $2.68.