Jim Cramer is considering investing in BlackRock, the largest asset manager in the world, and has added it to our watchlist.
BlackRock’s shares hit a record high after reporting third-quarter earnings that exceeded expectations. The company now has $11.5 trillion in assets due to strong inflows during a stock market rally. CEO Larry Fink mentioned they added $2 trillion over the last five years, which corresponds to being among the top six asset managers.
BlackRock also recently acquired Global Infrastructure Partners for $12.5 billion, adding over $100 billion in assets. The financial industry began reporting quarterly earnings on Friday, with companies like Wells Fargo also showing strong results. Morgan Stanley, another portfolio company, will report next Wednesday.
While the market dealt with high interest rates, the Fed cut rates last month, and future moves are being debated. There were expectations for further cuts, which may now only be 50 basis points.
BlackRock’s excellent results strengthen its case for our watchlist. The stock has surged over 12% recently, compared to the S&P 500’s 4% increase.
Though Cramer knows the stock has risen significantly, he believes it could rise further. He has been busy with other companies and takes time before making trades.
CNBC Investing Club subscribers receive alerts before trades, with specific waiting times before execution. Remember, there is no guaranteed outcome or profit from these trades.
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