Jim Cramer is considering investing in BlackRock, the largest asset manager in the world, and has added it to our watchlist. BlackRock’s stock hit a record high after reporting third-quarter earnings that exceeded expectations and achieving $11.5 trillion in assets, boosted by strong market inflows. CEO Larry Fink highlighted that they added $2 trillion over five years, equivalent to being among the six largest asset managers.
Alongside BlackRock, other financial companies like Wells Fargo also reported good earnings. Morgan Stanley is set to report next week. The financial sector is navigating challenges due to steady interest rates, but prospects for cuts from the Federal Reserve are changing. After recent cuts, the market previously expected more, but sentiments are now shifting towards lower expectations.
BlackRock’s impressive earnings further support considering the stock, hence its placement in our watchlist. The stock has surged over 12% in the past month, while the S&P 500 has only risen about 4%. Cramer noted that even though the stock has risen significantly, it has the potential to increase further. He has been focusing on Wells Fargo and Morgan Stanley before making a move on BlackRock.
As part of the CNBC Investing Club, you will receive alerts before any trades are made. Cramer allows a 45-minute window after sending an alert before executing the trade, and if the stock is discussed on CNBC, he waits 72 hours to act.
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