Jim Cramer is considering an investment in BlackRock, the largest asset manager globally, and it’s now on our Bullpen watchlist. BlackRock’s shares hit a record high after reporting third-quarter earnings that exceeded expectations. CEO Larry Fink shared that their assets under management reached $11.5 trillion due to strong market inflows. He mentioned, “We’ve added $2 trillion over the last five years,” comparable to the sixth largest asset manager’s size.
Recently, BlackRock acquired Global Infrastructure Partners for $12.5 billion, leading to an addition of over $100 billion in assets. This quarter’s earnings season began with strong performances from companies like Wells Fargo and expectations for Morgan Stanley’s report next Wednesday.
The financial environment remains uncertain due to persistently high interest rates. Following a recent rate cut by the Fed, expectations have shifted to a probable total of 50 basis points cut by year-end instead of the initially anticipated 75.
Jim Cramer highlighted BlackRock’s impressive results as a reason to consider investing. The stock has risen over 12% in the past month, outpacing the S&P 500’s 4% gain. Although Cramer acknowledges that the stock has already surged, he believes there is potential for further growth.
Cramer is cautious in making decisions, having focused on Wells Fargo and Morgan Stanley recently. Subscribers to the CNBC Investing Club with Jim Cramer receive alerts before trades, with a waiting period before execution.
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