BlackRock Lifts U.S. Stock Rating to Overweight with 12.6% Profit Growth Forecast
BlackRock has raised its U.S. stock rating to overweight from neutral after observing signs of renewed flows through the Strait of Hormuz and contained macro impacts from the Iran conflict. The firm cites a 12.6% first‐quarter S&P 500 profit growth expectation and forecasts 45% technology earnings expansion.
1. Rating Upgrade to Overweight
BlackRock upgraded its U.S. stock rating from neutral to overweight in its weekly market note, citing $14 trillion of assets under management and two key signposts: evidence of flow resumption through the Strait of Hormuz and contained macro damage from the Iran war.
2. Elevated Earnings Projections
The firm highlights an expected 12.6% S&P 500 profit increase in Q1 and a projected 45% earnings surge in the technology sector, noting that tech valuations now stand at their lowest relative to other sectors since mid-2020.
3. Continued War Impact Assessment
Strategists believe prospects for a lasting ceasefire have limited the conflict’s market impact, prompting renewed risk exposure in U.S. and emerging markets and a tactical preference for defense-thematic opportunities.