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AB vs. BLK: Which Stock Should Value Investors Buy Now?
ZACKSยท 2025-08-29 16:41
Core Viewpoint - Investors in the Financial - Investment Management sector should consider AllianceBernstein (AB) and BlackRock (BLK) for potential value opportunities, with AB currently presenting a stronger case for investment [1]. Group 1: Zacks Rank and Earnings Outlook - AllianceBernstein has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while BlackRock holds a Zacks Rank of 3 (Hold), suggesting a less favorable outlook [3]. - The Zacks Rank system is designed to identify stocks with improving earnings outlooks, which is currently favorable for AB [2][3]. Group 2: Valuation Metrics - AB has a forward P/E ratio of 11.96, significantly lower than BLK's forward P/E of 23.77, indicating that AB may be undervalued relative to BLK [5]. - The PEG ratio for AB is 1.50, while BLK's PEG ratio is 2.16, further suggesting that AB offers better value considering expected earnings growth [5]. - AB's P/B ratio stands at 2.22 compared to BLK's 3.55, reinforcing the notion that AB is more attractively priced based on its book value [6]. - These metrics contribute to AB's Value grade of B, while BLK has a Value grade of F, indicating a significant difference in perceived value between the two companies [6].