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2 Stocks Wall Street Analysts Swear By
Stock Analysis & Ideas

2 Stocks Wall Street Analysts Swear By

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In the current economic scenario, Blackrock and Ally Financial are two financial sector stocks that boast a Strong Buy consensus rating on TipRanks.

As the inflation rate in the U.S. reaches a 40-year high at 9.1% in June, it is becoming increasingly difficult for investors to identify stocks that could be called safe bets. This is where TipRanks comes to help with its Analysts’ Top Stocks tool. The tool offers a list of stocks with a ‘Strong Sell’ or Strong Buy’ consensus rating.

Within the financial sector, Blackrock, Inc. (NYSE: BLK) and Ally Financial, Inc. (NYSE: ALLY) are two large-cap stocks that command a Strong Buy consensus rating. Let’s learn more about them.

Blackrock (BLK)

Based out of New York, Blackrock provides risk management, investment management, and advisory services. As of January 2022, the company had $10 trillion in assets under management (AUM). Its clients are spread across 100 nations, and it has 70 offices in 30 countries.

On July 15, Blackrock reported disappointing results for the second quarter of 2022. Adjusted earnings declined 30% year-over-year to $7.36 per share, missing the Street’s estimate of $7.87 per share.

Revenue fell 6% to $4.3 billion, primarily due to foreign exchange fluctuation and lower performance fees. AUM totaled $8.5 trillion, down 11% year-over-year.

The Chairman and CEO of Blackrock, Laurence D. Fink, said, “BlackRock generated net inflows of $90 billion in the second quarter demonstrating our ability, once again, to deliver industry-leading organic growth even in the most challenging of environments.”

On TipRanks, the stock has a Strong Buy consensus rating based on seven Buys and one Hold. Blackrock’s average price target of $730.88 reflects upside potential of 21.8% from current levels. Over the past year, shares of the company have lost 27.3%.

TipRanks’ Insider Trading Activity tool shows that Insider Confidence Signal is currently Positive for Blackrock, with corporate insiders buying BLK shares worth $2.1 million in the last three months.

Ally Financial (ALLY)

Detroit-based Ally Financial offers digital financial services such as an electronic trading platform, loans, insurance, corporate lending, and other online banking services. Apart from general consumers, its client base includes corporates, businesses, and automotive dealers.

Ally Financial is one of the biggest car financing companies in the U.S. and provides car leasing and financing to 4.5 million customers. Ally disburses 1.4 million car loans every year.

The company is scheduled to release its second-quarter results on July 19. The Street expects second-quarter earnings of $1.87 per share, down from $2.33 per share reported last year.

Ally’s EPS in the first quarter declined almost 3% year-over-year to $2.03 but surpassed analysts’ expectations of $1.93 per share. Meanwhile, revenue increased 10% to $2.1 billion.

On TipRanks, the stock has a Strong Buy consensus rating based on 10 Buys and two Holds. Ally’s average price forecast of $45.91 reflects upside potential of 33.3% from current levels. Shares of the company shares have lost almost 26.5% over the past year.

According to TipRanks’ Smart Score rating system, Ally Financial scores a ‘Perfect 10,’ suggesting that the stock is likely to outperform the market.

Should You Buy the Dip?

Shares of both Ally and Blackrock have lost more than 25% over the past year and are trading close to their all-time low prices. This makes them a good investment option as they have the backing of top Wall Street analysts. Another point worth noting is that these financial services providers have missed consensus earnings estimates only once in the last several quarters.

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