Jim Cramer is considering investing in BlackRock, the largest asset manager in the world, and it’s now on our Bullpen watchlist. BlackRock’s shares soared to a record high after it reported impressive third-quarter earnings that exceeded analysts’ expectations. CEO Larry Fink noted that their assets under management hit a new peak of $11.5 trillion, driven by significant inflows as the stock market improved.
Fink also highlighted the successful $12.5 billion acquisition of Global Infrastructure Partners, which added over $100 billion in assets. The finance sector kicked off earnings season with BlackRock and fellow Club company Wells Fargo posting strong results. Morgan Stanley, also in our portfolio, reports next Wednesday.
Amid a challenging operating environment and changing interest rates, the Fed’s next steps are unclear. Following last month’s significant rate cut, the market anticipated further reductions, but now only a smaller cut seems likely.
BlackRock’s impressive results make it a strong candidate for investment, prompting us to include it in the Bullpen. The firm’s consistent growth and quarterly inflows have fueled a surge in its stock price, which has risen over 12% in the past month, outperforming the S&P 500’s 4% gain. Cramer acknowledges the stock’s strong performance, saying it still has potential for more growth.
Why the delay in investment? Cramer highlighted the need for careful consideration while focusing on Wells Fargo and Morgan Stanley, as we don’t rush these decisions.
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