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Here's Why You Should Hold On to BlackRock (BLK) Stock Now
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BlackRock, Inc.'s (BLK - Free Report) strategic acquisitions and improving assets under management balance (AUM) bode well for the company’s near-term prospects. However, rising operating expenses is a concern.
BlackRock's acquisition moves across the globe have aided in expanding its footprint and market share. In November, the company agreed to acquire investment management services provider, Aperio Group LLC, for $1.05 billion in cash. Over the years, the company has purchased several firms worldwide, which have supported its top-line growth. The company's healthy liquidity position makes it well positioned to grow further through opportunistic acquisitions in the future.
Moreover, BlackRock's diverse product base, revenue streams and solid AUM balance are likely to continue supporting the top line. Over the six-year period ended 2019, the company’s revenues (on a GAAP basis) have witnessed a CAGR of 5.6%, while the AUM balance saw a CAGR of 9.8%. The momentum for both continued in the first three quarters of 2020 as well. Though the pandemic-induced economic uncertainties prevail, the company’s revenue growth is likely to sustain, given its efforts to boost the iShares and ETF operations, and heightened focus on active equity business.
Shares of this Zacks Rank #3 (Hold) company have gained 26% over the past six months, outperforming the 21.6% rise recorded by the industry. Furthermore, analysts seem to be bullish on the stock. The Zacks Consensus Estimate for earnings has been revised marginally and 1.3% upward for 2020 and 2021, respectively, in the past 60 days.
Nevertheless, escalating operating expenses is a cause of concern for BlackRock. Total expenses have witnessed a CAGR of 6.3% over the last six years (2014-2019) mainly due to rise in general and administration costs. The uptrend continued in the first nine months of 2020. Further, with its restructuring initiatives to improve operating efficiency, expenses might be elevated in the near term.
Asset Managers to Consider
Lazard Ltd (LAZ - Free Report) has witnessed 3% upward earnings estimate revision for the ongoing year in the past 30 days. Its shares have gained 1.5% over the past year. It currently flaunts a Zacks Rank of 1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Eaton Vance Corp. (EV - Free Report) has witnessed a marginal upward earnings estimate revision for the ongoing year in the past 30 days. Its shares have appreciated 42.8% over the past year. Currently, it carries a Zacks Rank of 2 (Buy).
Janus Henderson Group plc (JHG - Free Report) witnessed a 1.5% upward estimate revision for 2020 earnings over the past 30 days. Its shares have rallied 29.3 % over the past year. At present, it carries a Zacks Rank of 2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Here's Why You Should Hold On to BlackRock (BLK) Stock Now
BlackRock, Inc.'s (BLK - Free Report) strategic acquisitions and improving assets under management balance (AUM) bode well for the company’s near-term prospects. However, rising operating expenses is a concern.
BlackRock's acquisition moves across the globe have aided in expanding its footprint and market share. In November, the company agreed to acquire investment management services provider, Aperio Group LLC, for $1.05 billion in cash. Over the years, the company has purchased several firms worldwide, which have supported its top-line growth. The company's healthy liquidity position makes it well positioned to grow further through opportunistic acquisitions in the future.
Moreover, BlackRock's diverse product base, revenue streams and solid AUM balance are likely to continue supporting the top line. Over the six-year period ended 2019, the company’s revenues (on a GAAP basis) have witnessed a CAGR of 5.6%, while the AUM balance saw a CAGR of 9.8%. The momentum for both continued in the first three quarters of 2020 as well. Though the pandemic-induced economic uncertainties prevail, the company’s revenue growth is likely to sustain, given its efforts to boost the iShares and ETF operations, and heightened focus on active equity business.
Shares of this Zacks Rank #3 (Hold) company have gained 26% over the past six months, outperforming the 21.6% rise recorded by the industry. Furthermore, analysts seem to be bullish on the stock. The Zacks Consensus Estimate for earnings has been revised marginally and 1.3% upward for 2020 and 2021, respectively, in the past 60 days.
Nevertheless, escalating operating expenses is a cause of concern for BlackRock. Total expenses have witnessed a CAGR of 6.3% over the last six years (2014-2019) mainly due to rise in general and administration costs. The uptrend continued in the first nine months of 2020. Further, with its restructuring initiatives to improve operating efficiency, expenses might be elevated in the near term.
Asset Managers to Consider
Lazard Ltd (LAZ - Free Report) has witnessed 3% upward earnings estimate revision for the ongoing year in the past 30 days. Its shares have gained 1.5% over the past year. It currently flaunts a Zacks Rank of 1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Eaton Vance Corp. (EV - Free Report) has witnessed a marginal upward earnings estimate revision for the ongoing year in the past 30 days. Its shares have appreciated 42.8% over the past year. Currently, it carries a Zacks Rank of 2 (Buy).
Janus Henderson Group plc (JHG - Free Report) witnessed a 1.5% upward estimate revision for 2020 earnings over the past 30 days. Its shares have rallied 29.3 % over the past year. At present, it carries a Zacks Rank of 2.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>