3 Finance Stocks to Buy Ahead of Q2 Earnings: BLK, BK, STT

Financial Sector Overview - The financial sector will be highlighted with Q2 results from major domestic banks on July 15, including JPMorgan, Citigroup, and Wells Fargo [1] - Several finance stocks have a Zacks Rank 2 (Buy) and are worth considering beyond the three major banks [1] Major Regional Banks - The Zacks Banks-Major Regional Industry is in the top 5% of over 240 Zacks industries, with State Street and The Bank of New York Mellon as notable performers [2] - Both State Street and New York Mellon are expected to achieve double-digit EPS growth in fiscal 2025 and FY26, with anticipated Q2 earnings growth of 10% and 15% respectively [3] Operational Efficiency and Sales Growth - State Street and New York Mellon are expected to maintain industry-leading operational efficiency, having recently reached new 52-week highs and offering dividend yields over 2% [4] BlackRock's Performance - BlackRock, the world's largest asset manager, is projected to report a 12% year-over-year sales increase to $5.38 billion for Q2, with EPS expected to rise 5% to $10.86 [5] - BlackRock's annual earnings are expected to grow by 5% this year and by another 12% in fiscal 2026, reaching $51.75 per share, alongside an 11% sales growth in FY25 and a projected 15% increase in FY26 to $26.16 billion [6] Dividend and Stock Performance - BlackRock's stock is near a 52-week high of over $1,100, offering a 1.89% annual dividend yield, equating to $20.84 per share, with a payout ratio of 46% indicating potential for future dividend increases [9][10] Summary of Earnings Estimates - Ahead of their Q2 reports, State Street, The Bank of New York Mellon, and BlackRock stocks are positioned for potential gains, supported by positive earnings estimate revisions for FY25 and FY26 [11]