Jim Cramer is considering investing in BlackRock, the largest asset manager in the world, and has decided to add it to the Bullpen stocks-to-watch list. BlackRock’s shares surged to a record high after the firm posted third-quarter earnings that exceeded analysts’ expectations and announced that assets under management reached $11.5 trillion, a new record. CEO Larry Fink highlighted the firm’s organic growth of $2 trillion over the last five years and praised the recent acquisition of Global Infrastructure Partners, which added over $100 billion in assets. The financial industry’s quarterly earnings season started off well for BlackRock and other companies like Wells Fargo and Morgan Stanley.
The operating environment for Wall Street companies has been challenging due to higher interest rates, but the Federal Reserve’s recent rate cuts have provided some relief. There has been debate over the Fed’s next move, with expectations initially set for additional rate cuts but now projecting fewer cuts than previously anticipated. Despite the uncertainties, BlackRock’s strong performance in the third quarter and consistent growth in assets under management make it a compelling investment option. The company’s track record and management’s focus on expanding into private markets further support the decision to add BlackRock to the Bullpen list.
BlackRock’s shares have been performing well, with a more than 12% increase in the past month compared to the S&P 500’s 4% gain. Jim Cramer acknowledged that the stock has already seen significant growth but believes there is still upside potential. While Cramer expressed regret for not acting sooner, he noted that investment decisions are not made hastily and that other considerations, such as Wells Fargo and Morgan Stanley, were being prioritized. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade, with a waiting period of 45 minutes before executing the transaction.
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