Trade-Ideas: BlackRock (BLK) Is Today's Unusual Social Activity Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified BlackRock ( BLK) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified BlackRock as such a stock due to the following factors:

  • BLK has 16x the normal benchmarked social activity for this time of the day compared to its average of 2.75 mentions/day.
  • BLK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $202.5 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on BLK:

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. The stock currently has a dividend yield of 2.5%. BLK has a PE ratio of 18.8. Currently there are 10 analysts that rate BlackRock a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for BlackRock has been 832,400 shares per day over the past 30 days. BlackRock has a market cap of $45.3 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.46 and a short float of 1.3% with 2.37 days to cover. Shares are up 31.7% year to date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates BlackRock as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 8.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 54.10% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BLK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • BLACKROCK INC has improved earnings per share by 15.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BLACKROCK INC increased its bottom line by earning $13.80 versus $12.38 in the prior year. This year, the market expects an improvement in earnings ($15.78 versus $13.80).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Capital Markets industry average. The net income increased by 10.5% when compared to the same quarter one year prior, going from $572.00 million to $632.00 million.
  • 41.40% is the gross profit margin for BLACKROCK INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.80% is above that of the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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