Jim Cramer is considering investing in BlackRock, the largest asset manager globally, placing it on our Bullpen watchlist. BlackRock’s shares hit a record high after strong third-quarter earnings, exceeding expectations. The company also reported a record $11.5 trillion in assets due to increasing investments as the market improved. CEO Larry Fink highlighted that they added $2 trillion in five years, positioning them among the largest asset managers. Additionally, the recent acquisition of Global Infrastructure Partners for $12.5 billion boosted their assets by over $100 billion.
Financial reports were released on Friday, showing strong results from BlackRock and Wells Fargo, with Morgan Stanley reporting next Wednesday. These firms are coping with prolonged high interest rates, and the Federal Reserve’s next interest move remains uncertain. Recent discussions shifted expectations for forthcoming rate cuts from 75 basis points to 50.
Given BlackRock’s excellent performance, we’re compelled to consider starting an investment in the stock. The company has seen a 12% increase in shares over the past month, outperforming the S&P 500’s 4% rise. Although the stock has risen significantly, Jim believes there’s potential for further gains. Any investment decision is taken with caution, as Jim is currently engaged with Wells Fargo and Morgan Stanley.
Subscribers to the CNBC Investing Club receive trade alerts before Jim takes action. He waits 45 minutes to execute trades after alerts and 72 hours if a stock is discussed on CNBC TV. Please note, our investing information is subject to terms and conditions, and no specific profit outcome is guaranteed.
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