We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Reasons that Make BlackRock (BLK) Stock a Solid Pick Now
Read MoreHide Full Article
BlackRock, Inc. (BLK - Free Report) offers a profitable investment opportunity driven by steady earnings growth and strong liquidity position.
Analysts also seem to be optimistic about its growth prospects as evident from the upward estimate revisions. Over the last 30 days, the Zacks Consensus Estimate for the current year was revised nearly 1% upward.
Further, this Zacks Rank #2 (Buy) stock has rallied 12.1% in the last three months, outperforming the Zacks categorized Investment Management industry’s gain of 7.5%.
BlackRock has a number of other aspects that make it an attractive investment option.
Earnings Per Share (EPS) Growth: In the last three to five years, BlackRock witnessed EPS growth of 13.9%, driven by strong global presence that allows broad diversification and organic growth. The company’s earnings are projected to grow 13.4% and 11.4% in 2017 and 2018, respectively.
Further, its long-term (three to five years) expected EPS growth of 12.2% promises reward for shareholders.
Revenue Strength: BlackRock’s revenues (on GAAP basis) witnessed a five-year CAGR of 4.5% (2012–2016). Also, the top line is expected to grow nearly 7.7% in 2017, considerably higher than the industry average of 3.5%. This indicates its superiority in generating revenues.
Impressive Capital Deployment Activities: Driven by its capital strength, BlackRock’s capital deployment activities are impressive. In January, the company announced a 9% dividend hike and it has a share buyback plan in place. With a strong capital position, the company should continue rewarding shareholders through meaningful capital deployment.
Strategic Acquisitions: BlackRock has expanded primarily via acquisitions, with majority of its assets under management (AUM) growth driven by the same. Recently, it acquired the First Reserve Energy Infrastructure Funds, while over the years the company acquired several global and domestic firms. All these should support the company’s AUM growth.
Other Stocks to Consider
Some other stocks in the same industry worth considering include Eaton Vance Corp. (EV - Free Report) , KKR & Co. L.P. (KKR - Free Report) and Franklin Resources, Inc. (BEN - Free Report) .
The Zacks Consensus Estimate for Eaton Vance was revised 3.3% upward for the current year, in the last 60 days. The company’s share price has increased 15.2% so far this year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KKR & Co, with a Zacks Rank #2, witnessed an upward earnings estimate revision of 10.5% for the current year, in the last 60 days. Its share price has increased 22.7% year to date.
Franklin Resources also has a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 4% for the current fiscal year, in the last 60 days. So far this year, its share price has increased 12.4%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Reasons that Make BlackRock (BLK) Stock a Solid Pick Now
BlackRock, Inc. (BLK - Free Report) offers a profitable investment opportunity driven by steady earnings growth and strong liquidity position.
Analysts also seem to be optimistic about its growth prospects as evident from the upward estimate revisions. Over the last 30 days, the Zacks Consensus Estimate for the current year was revised nearly 1% upward.
Further, this Zacks Rank #2 (Buy) stock has rallied 12.1% in the last three months, outperforming the Zacks categorized Investment Management industry’s gain of 7.5%.
BlackRock has a number of other aspects that make it an attractive investment option.
Earnings Per Share (EPS) Growth: In the last three to five years, BlackRock witnessed EPS growth of 13.9%, driven by strong global presence that allows broad diversification and organic growth. The company’s earnings are projected to grow 13.4% and 11.4% in 2017 and 2018, respectively.
Further, its long-term (three to five years) expected EPS growth of 12.2% promises reward for shareholders.
Revenue Strength: BlackRock’s revenues (on GAAP basis) witnessed a five-year CAGR of 4.5% (2012–2016). Also, the top line is expected to grow nearly 7.7% in 2017, considerably higher than the industry average of 3.5%. This indicates its superiority in generating revenues.
Impressive Capital Deployment Activities: Driven by its capital strength, BlackRock’s capital deployment activities are impressive. In January, the company announced a 9% dividend hike and it has a share buyback plan in place. With a strong capital position, the company should continue rewarding shareholders through meaningful capital deployment.
Strategic Acquisitions: BlackRock has expanded primarily via acquisitions, with majority of its assets under management (AUM) growth driven by the same. Recently, it acquired the First Reserve Energy Infrastructure Funds, while over the years the company acquired several global and domestic firms. All these should support the company’s AUM growth.
Other Stocks to Consider
Some other stocks in the same industry worth considering include Eaton Vance Corp. (EV - Free Report) , KKR & Co. L.P. (KKR - Free Report) and Franklin Resources, Inc. (BEN - Free Report) .
The Zacks Consensus Estimate for Eaton Vance was revised 3.3% upward for the current year, in the last 60 days. The company’s share price has increased 15.2% so far this year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KKR & Co, with a Zacks Rank #2, witnessed an upward earnings estimate revision of 10.5% for the current year, in the last 60 days. Its share price has increased 22.7% year to date.
Franklin Resources also has a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 4% for the current fiscal year, in the last 60 days. So far this year, its share price has increased 12.4%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>