Jim Cramer is considering investing in BlackRock, the largest asset manager globally, and has added it to our “Bullpen” watch list. Recently, BlackRock’s shares hit a record high after reporting outstanding third-quarter earnings, exceeding analyst expectations. CEO Larry Fink announced that assets under management reached $11.5 trillion, boosted by substantial inflows as the stock market rallied. Fink highlighted the company’s $12.5 billion acquisition of Global Infrastructure Partners, which added over $100 billion in assets.
The financial sector recently began reporting quarterly earnings. In addition to BlackRock, Wells Fargo also posted strong results, while Morgan Stanley will report next Wednesday. These firms face challenges due to prolonged high-interest rates, with the Federal Reserve recently cutting rates. The market initially expected more aggressive cuts before year-end, but now sees just a 50 basis point cut.
In summary, BlackRock’s impressive quarterly performance makes it an attractive investment option. Their shares have surged over 12% in the past month, compared to the S&P 500’s 4% gain. Cramer acknowledges the stock’s recent rise but believes it could continue to grow. He notes the careful approach in deciding to invest, having focused on other firms like Wells Fargo and Morgan Stanley recently.
As a subscriber to Jim Cramer’s CNBC Investing Club, you’ll receive alerts before he trades. Cramer waits 45 minutes after sending a trade alert to execute any trades, and if he discusses a stock on CNBC, he delays trading for 72 hours.
`
