Jim Cramer is considering investing in BlackRock, the largest asset manager globally, and it has been added to our Bullpen stocks-to-watch list.
BlackRock’s shares hit a record high after it reported third-quarter earnings that exceeded analysts’ expectations. The company now manages $11.5 trillion, boosted by $2 trillion in recent inflows, according to CEO Larry Fink.
Fink highlighted the recent $12.5 billion acquisition of Global Infrastructure Partners, which added over $100 billion in assets. The financial industry is currently releasing quarterly earnings, with Wells Fargo also reporting strong results. Morgan Stanley will report next Wednesday.
The financial sector has been navigating high-interest rates, but the Federal Reserve’s recent rate cuts are stirring debate about future moves. Initially, the market anticipated more substantial cuts, but now only a 50-basis-point cut is expected.
BlackRock’s impressive results provide strong reasons for the Club to consider investing in the stock. Its shares have risen over 12% in the last month, while the S&P 500 has only increased by about 4%. Cramer mentioned that while BlackRock’s stock has performed well, there might still be more growth ahead.
While Cramer wishes he had acted sooner, he is currently focused on Wells Fargo and Morgan Stanley, emphasizing careful decision-making. Subscribers to the CNBC Investing Club receive trade alerts 45 minutes before Cramer executes trades in his trust’s portfolio and must wait 72 hours if the stock was discussed on CNBC.
Note: Investing Club information is subject to terms and conditions, with no guarantees on outcomes or profits.
