Long Trade Idea
Enter your long position between $1,080.24 (yesterday’s close) and $1,103.79 (yesterday’s intra-day high).
Market Index Analysis
- BlackRock (BLK) is a member of the S&P 100 Index and the S&P 500 Index.
- Both indices trade inside bearish chart patterns with decreasing bullish volumes.
- The Bull Bear Power Indicator of the S&P 500 Index is bearish with a descending trendline.
Market Sentiment Analysis
Equity futures are drifting higher despite a deep divide within the US Federal Reserve over the direction of monetary policy. Despite the minutes noting the potential for interest rate hikes, markets, for now, anticipate two more interest rate cuts. The New York Federal Reserve published a paper suggesting that US consumers shoulder 90% of tariff costs, as President Trump continues to pin his success on tariffs amid an affordability crisis. Earnings from Walmart will dominate the non-tariff headlines today, after DoorDash missed expectations, and Carvana plunged in after-hours trading.
BlackRock Fundamental Analysis
BlackRock is a multinational investment company, the world’s largest asset manager with over $13.5 trillion in assets under management, and one of the Big Four index fund managers, managing the iShares ETF group.
So, why am I bullish on BLK following its breakout?
BlackRock reported revenues of $7.01 billion and earnings per share of $13.16, beating expectations of $6.76 billion and $12.24, respectively. I am bullish on its Aladdin platform, which manages $9 trillion in assets, enables AI-driven risk management and investment tools, and generates roughly $4.5 billion in profits annually. The ongoing demand for ETFs and recent strategic moves, including taking a position in Ethereum, and investments in global energy transition, infrastructure, and data centers, position BlackRock for more upside.
Metric | Value | Verdict |
PE Ratio | 30.96 | Bearish |
PB Ratio | 2.99 | Bearish |
PEG Ratio | 1.11 | Bullish |
Current Ratio | 14.41 | Bullish |
ROIC-WACC Ratio | Positive | Bullish |
The price-to-earnings (PE) ratio of 30.96 indicates BLK is moderately overvalued. By comparison, the P/E ratio for the S&P 500 is 29.56.
The average analyst price target for BLK is $1,328.44. This suggests good upside potential with reasonable downside risk.
BlackRock Technical Analysis
Today’s BLK Signal
- The BLK D1 chart shows price action breaking out above its horizontal support zone.
- It also shows price action below its ascending Fibonacci Retracement Fan.
- The Bull Bear Power Indicator turned bullish with an ascending trendline.
- The average bearish trading volumes are higher than the average bullish trading volumes, suggesting more short-term volatility.
- BLK mostly followed the S&P 500 Index, a bullish confirmation.
My BLK Long Stock Trade
- BLK Entry Level: Between $1,080.24 and $1,103.79
- BLK Take Profit: Between $1,219.94 and $1,256.54
- BLK Stop Loss: Between $1,017.00 and $1,031.00
- Risk/Reward Ratio: 2.21
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