Back to top

Image: Bigstock

4 Reasons to Add BlackRock (BLK) Stock to Your Portfolio Now

Read MoreHide Full Article

BlackRock, Inc.’s (BLK - Free Report) strong global presence along with broad product diversification and revenue mix will likely further boost revenues in the future. Also, supported by a solid balance sheet position, the company remains on track for growth through acquisitions. Given the company’s strong fundamentals and growth prospects, adding the stock to your portfolio seems a wise idea now.

Shares of the company have gained 27.2% in the year-to-date period, outperforming 11.8% growth of the industry it belongs to.



Moreover, BlackRock’s Zacks Consensus Estimate for 2019 and 2020 earnings has been revised marginally upward over the past 30 days, reflecting analysts’ optimism regarding earnings growth potential. The stock carries a Zacks Rank #2 (Buy).

BlackRock has a number of other aspects that make it an attractive investment option right now.

Earnings Growth: In the last three to five years, the company witnessed EPS growth of 9%, higher than the industry’s growth of 5.8%. Moreover, BlackRock’s earnings are projected to grow 2.5% and 10.8% in 2019 and 2020, respectively.

Further, the company’s long-term (three to five years) expected EPS growth rate of 10.4% promises reward for shareholders.

Revenue Strength: Driven by a solid global presence, broad product diversification and organic growth, BlackRock’s revenues (on a GAAP basis) witnessed a five-year (2014-2018) CAGR of 6.4%. This uptrend is likely to continue in the near term as indicated by its projected sales growth rate of 1.2% for 2019 and 9% for 2020.

Impressive Capital Deployment Activities: BlackRock has an impressive capital-deployment plan. The company increases its dividend annually, with the latest hike of 5% announced in January 2019. Also, under the existing share buyback plan, 5.9 million shares were left to be repurchased, as of Sep 30, 2019. With a solid liquidity position, the company will likely continue rewarding shareholders through strategic capital deployment.

Strategic Acquisitions: Given a solid balance sheet position, BlackRock has expanded primarily through acquisitions. In May 2019, the company acquired eFront. In 2018, it acquired asset management business of Citigroup Inc.’s C subsidiary, Citibanamex in Mexico and Tennenbaum Capital. Apart from these, over the years, the company acquired several firms across the globe, thus expanding its footprint. All these are anticipated to support top-line growth.

Other Key Picks

Virtus Investment Partners, Inc’s VRTS earnings estimates for 2019 have moved slightly north in the past 30 days. Moreover, this Zacks Rank #1(Strong Buy) stock has gained 46.6% in the year-to-date period. You can see the complete list of today’s Zacks #1 Rank stocks here.

Federated Investors, Inc’s FII earnings estimates for 2019 have been revised marginally upward in the past 30 days. Moreover, this Zacks #2 Ranked stock has risen 23.6% year to date.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


BlackRock, Inc. (BLK) - free report >>