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By Roy Ward

You’re probably wondering which stock will be the next big winner. BlackRock (NYSE:BLK) offers great potential and fits all of my fundamental criteria. The stock price is very reasonable, too.

BlackRock is the largest publicly traded investment management company in the world, with assets under management totaling $3.65 trillion. The company offers a variety of investment and advisory products and services to institutional and individual investors at home and abroad.

BlackRock’s December 2009 acquisition of Barclays Global Investors is adding significant revenues and profits. Barclays’ vast array of iShare ETF offerings will enhance BlackRock’s product portfolio and lead to significant cross-selling opportunities. A recent study found that many institutional investors, such as pension funds, are investing significantly more dollars into ETFs in 2011.

During the past 12-month period, BlackRock’s revenues and earnings per share soared 56% and 48%, respectively. The Barclays purchase and improved financial markets helped to produce outstanding results. I forecast revenue and EPS growth of 15% during the next 12-month period. BlackRock could exceed my forecast if sales of iShare ETFs continue to accelerate.

BlackRock’s shares sell at a reasonable 15.0 times my forward 12-month EPS forecast. Cost savings and new selling opportunities from the Barclays acquisition will lead to significant growth during the next several years. I expect BLK’s stock price to increase to my minimum sell price within two to three years. BLK is very low risk and the dividend yield is attractive at 2.8%. Buy BlackRock, and don’t be scared off by the ostensibly high price of almost 200. I think the company’s stock price has a lot further to go.

Source: BlackRock: The Next Big Winner