Stock of the Day

November 23, 2020

BlackRock (BLK)

$993.02
+$7.56 (+0.8%)
Market Cap: $154.29B

About BlackRock

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.

BlackRock Bull Case

Here are some ways that investors could benefit from investing in BlackRock, Inc.:

  • The current stock price is around $977, which reflects a strong market position and investor confidence in the company's future growth.
  • BlackRock, Inc. reported a quarterly earnings per share (EPS) of $11.30, exceeding analysts' expectations, indicating robust financial performance.
  • The company has a high net margin of over 31%, showcasing its efficiency in converting revenue into profit, which is attractive for potential investors.
  • BlackRock, Inc. has a significant market capitalization of approximately $151 billion, suggesting stability and a strong presence in the asset management industry.
  • Recent upgrades from analysts, including a "hold" rating from Wall Street Zen, indicate positive sentiment and potential for future price appreciation.

BlackRock Bear Case

Investors should be bearish about investing in BlackRock, Inc. for these reasons:

  • Analysts have recently lowered their price targets for BlackRock, indicating a cautious outlook on the stock's short-term performance.
  • The stock has experienced fluctuations, with a 1-year high of $1,084 and a low of $752, suggesting volatility that may concern risk-averse investors.
  • Institutional investors own a significant 80.69% of the stock, which could lead to less price stability if large holders decide to sell.
  • BlackRock's revenue for the latest quarter was below analysts' expectations, which may raise concerns about future growth potential.
  • The company has a relatively high price-to-earnings (P/E) ratio of around 23, which could indicate that the stock is overvalued compared to its earnings.
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