4 Reasons that Make BlackRock, Inc. (BLK) Stock a Solid Pick Now

BLK features attractive valuation and strategic measures

BlackRock, Inc. (NYSE:BLK) offers a profitable investment opportunity driven by steady earnings growth and strong liquidity position.

4 Reasons that Make BlackRock, Inc. (BLK) Stock a Solid Pick NowAnalysts 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 Financial Stocks to Consider

Some other stocks in the same industry worth considering include Eaton Vance Corp (NYSE:EV), KKR & Co. L.P. (NYSE:KKR) and Franklin Resources, Inc. (NYSE:BEN).

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 >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Franklin Resources, Inc. (BEN): Free Stock Analysis Report

BlackRock, Inc. (BLK): Free Stock Analysis Report

KKR & Co. L.P. (KKR): Free Stock Analysis Report

Eaton Vance Corporation (EV): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2017/06/4-reasons-that-make-blackrock-blk-stock-a-solid-pick-now/.

©2019 InvestorPlace Media, LLC