4 Reasons to Add BlackRock (BLK) Stock to Your Portfolio Now (2024)
Zacks Equity Research
·3 min read
It seems to be a wise idea to add BlackRock, Inc. BLK stock to your portfolio now. The company's initiatives to restructure the active equity business are expected to continue to support its top-line growth. Moreover, its inorganic growth efforts bode well for the future.
The Zacks Consensus Estimate for BLK’s current-year earnings has been revised 1% upward over the past 60 days, reflecting analysts’ optimism regarding its earnings growth potential. Thus, the company currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, shares of BLK have gained 13.1% in the past six months, outperforming 10.1% growth recorded by the industry.
A few other aspects that make BlackRock an attractive investment option right now are mentioned below.
Earnings Growth: In the last three to five years, the company witnessed earnings per share (EPS) growth of 11.4%, higher than the industry’s rise of 9.2%. While BlackRock’s earnings are projected to decline 1.5% in 2023, the same is expected to grow 13.4% in 2024.
Further, the company’s long-term (three to five years) expected EPS growth rate of 8.6% promises reward for investors.
Revenue Strength: Driven by a solid global presence, broad product diversification and steadily improving assets under management (AUM) balance, BlackRock’s revenues (on a GAAP basis) witnessed a seven-year (2016-2022) CAGR of 6.5%.
Given the company’s efforts to strengthen the iShares and ETF operations, and increased focus on the active equity business, its top line is expected to be positively impacted in the quarters ahead. In 2023 and 2024, BLK’s revenues are projected to grow 1.5% and 9.2%, respectively.
Inorganic Growth Efforts: Supported by a solid balance sheet position, BlackRock has expanded inorganically, which bodes well for the future. In June 2021, it acquired the Climate Change Scenario Model of Baringa Partners. In February 2021, it completed the acquisition of investment management services provider, Aperio Group.
Apart from these, over the years, the company has acquired several firms across the globe, thus expanding its footprint and market share. With a strong liquidity position, the company is well-positioned to grow further through buyouts.
Superior Return on Equity (ROE): The company’s ROE of 14.38% is higher than the industry average of 12.92%. This shows that it reinvests its cash more efficiently than its peers.
Other Stocks to Consider
A couple of other top-ranked stocks from the finance space are The Bank of New York Mellon Corporation BK and First Horizon Corporation FHN. Both companies currently carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings estimates for BK have been revised 2.5% upward for 2023 over the past 60 days. BNY Mellon’s share price has rallied 9.8% over the past six months.
First Horizon’s earnings estimates have been revised upward by 1% for the current year over the past 60 days. In six months’ time, FHN’s share price has declined 23.7%.
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The average price target represents 19.15% Increase from the current price of $763.26. What do analysts say about BlackRock? BlackRock's analyst rating consensus is a Strong Buy. This is based on the ratings of 10 Wall Streets Analysts.
The world's largest asset manager keeps growing its dividend and is a solid choice for income-focused investors. If you're looking to make money while you sleep, dividend stocks can be an excellent place to start. Dividend-paying companies can be a solid source of passive income for investors.
BlackRock currently has an average brokerage recommendation (ABR) of 1.34, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 16 brokerage firms. An ABR of 1.34 approximates between Strong Buy and Buy.
BlackRock's quarterly dividend per share has cumulatively compounded by 54.5% in the past five years to the current rate of $5.10 - - a 9.1% compound annual growth rate.
quote is equal to 760.110 USD at 2024-04-23. Based on our forecasts, a long-term increase is expected, the "BLK" stock price prognosis for 2029-04-18 is 805.799 USD. With a 5-year investment, the revenue is expected to be around +6.01%. Your current $100 investment may be up to $106.01 in 2029.
BlackRock is a global company with 70 offices in 30 countries, giving us unique global reach and local relationships. Because we cover all corners of the globe, we bring the best of the world to how we invest in the U.S.
Valuation metrics show that BlackRock, Inc. may be overvalued. Its Value Score of D indicates it would be a bad pick for value investors. The financial health and growth prospects of BLK, demonstrate its potential to underperform the market.
Larry Fink, one of the original eight Blackrock owners and founders, currently holds the positions of CEO and Chairman and is the largest individual shareholder of the company. As of 6 November 2023, he held 435,260 shares of the asset management firm.
Fink is the CEO and co-founder of BlackRock. Along with seven colleagues, he started the company. As of 31 January 2023, he owned 520,126 making him the biggest individual shareholder.
BlackRock. Highlights: 5.2% 10-year expected nominal return for U.S. large-cap equities; 9.9% for European equities; 9.1% for emerging-markets equities; 5.0% for U.S. aggregate bonds (as of September 2023). All return assumptions are nominal (non-inflation-adjusted).
Is BlackRock stock a Buy, Sell or Hold? BlackRock stock has received a consensus rating of buy. The average rating score is and is based on 44 buy ratings, 12 hold ratings, and 0 sell ratings.
BlackRock's largest institutional shareholders are Vanguard Group, BlackRock Fund Advisors, State Street Global Advisors, Temasek Holdings, and Bank of America. The company's largest individual shareholders include original BlackRock owners and founders Larry Fink and Susan L. Wagner, Robert S.
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