Jim Cramer is looking into investing in BlackRock, the biggest asset manager in the world. We’re adding it to our stocks-to-watch list.
BlackRock’s shares recently hit an all-time high after reporting third-quarter earnings that exceeded expectations. The company announced its assets under management reached a record $11.5 trillion due to significant investments as the stock market rebounded. CEO Larry Fink stated that they added $2 trillion in five years, equivalent to being among the top six asset managers.
Fink also highlighted the successful $12.5 billion acquisition of Global Infrastructure Partners, which increased their assets by over $100 billion.
Other financial firms, like Wells Fargo and Morgan Stanley, also reported strong results as the earnings season began. The financial landscape has been challenging, with Wall Street adapting to rising interest rates until the Federal Reserve cut rates last month. There’s ongoing debate about future rate cuts, which were initially expected to be higher but now may only be 50 basis points.
BlackRock’s impressive quarterly performance reinforces our interest in the stock, prompting us to place it in the Bullpen. The company has consistently shown strong inflows and growth. Recently, BlackRock shares rose over 12% in a month, compared to the S&P 500’s 4% gain. Cramer noted, “The stock has run a lot, but it can keep going.”
We haven’t yet invested because we’ve been focusing on Wells Fargo and Morgan Stanley, and we approach these moves carefully. Subscribers of the CNBC Investing Club with Jim Cramer will receive a trade alert before any trades, allowing a window of 45 minutes before any action is taken. If discussed on CNBC TV, there’s a 72-hour wait before executing trades.
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