Jim Cramer is considering investing in BlackRock, the largest asset manager in the world, and it’s now on our stocks-to-watch list.
BlackRock’s shares hit a record high after posting strong third-quarter earnings, exceeding analysts’ expectations. Assets under management reached a record $11.5 trillion, aided by significant inflows as the stock market rose. CEO Larry Fink mentioned that they’ve added $2 trillion over the last five years, ranking them among the sixth largest asset managers.
Fink also highlighted BlackRock’s recent $12.5 billion acquisition of Global Infrastructure Partners, which increased their assets by over $100 billion. The financial sector began reporting quarterly earnings, with Wells Fargo also posting solid results. Morgan Stanley reports next Wednesday.
The current market has been complicated with prolonged high-interest rates until a recent Federal Reserve cut. While expected cuts were initially higher, the likelihood now seems to favor just a 50-basis-point cut by year-end.
BlackRock’s impressive results make it an attractive option for investment. Their stock has gained over 12% recently, outpacing the S&P 500’s roughly 4% increase. Cramer acknowledges the stock has risen significantly but believes it can continue to grow.
Despite the stock’s current performance, Cramer has been focusing on Wells Fargo and Morgan Stanley before making moves. As a member of Jim Cramer’s Charitable Trust, you’ll receive trade alerts before any transactions. Jim waits a set period after sending alerts to execute trades.
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