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BlackRock Financial Management, Inc. is an investment advisory and hedge fund firm founded by Robert S. Kapito. The firm is a subsidiary of BlackRock, Inc. The firm caters to high net-worth individuals, banking or thrift institutions, pension and profit sharing plans, charitable organizations and corporations and manages over $150 billion in assets.

Investment Strategy: BlackRock Financial Management combines quantitative screens and risk analysis with fundamental research. The firm reduces the universe of potential candidates through proprietary screens. Each specific style determines which factors are reviewed in the screens. The BlackRock large-cap series team identifies companies that are trading at reasonable valuations, as well as possess quality management, strong earnings growth rates, and the potential for excellent long-term performance relative to the benchmark. The firm employs fundamental analysis to verify or reject the results of the model by evaluating data accuracy, growth quality, as well as the sustainability or feasibility of growth rates. The bottom-up stock selection is used to guide sector weightings.

The following is a list of its top 15 buys in the last quarter, as released in BlackRock's most recent 13F filing with the SEC.

Stock

Symbol

Shares Held - 12/31/2010

Shares Held - 03/31/2011

Pfizer Inc.

PFE

25,408,391

29,502,155

The Goldman Sachs Group Inc.

GS

1,372,203

1,771,166

American International Group Inc.

AIG

394,074

2,173,574

Texas Instruments Inc.

TXN

4,538,163

6,265,069

Philip Morris International Inc.

PM

6,103,441

7,002,590

Alcoa Inc.

AA

6,738,039

9,521,826

Walter Energy Inc.

WLT

158,579

478,696

Eaton Corporation

ETN

778,874

1,494,953

Medtronic Inc.

MDT

3,484,443

4,485,998

FirstEnergy Corp.

FE

1,310,742

2,336,275

Microsoft Corporation

MSFT

29,742,874

31,215,244

Citigroup Inc.

C

110,788,721

118,750,542

Tesoro Corporation

TSO

468,906

1,778,681

Ameriprise Financial Inc.

AMP

935,991

1,500,750

Dell Inc.

DELL

7,146,991

9,373,555

Here are some of the specifics about these companies, including a brief description of their business, growth expectations (top line and bottom line) and Valuation:

Pfizer Inc.

BlackRock bought 4,093,764 shares of Pfizer Inc. last quarter and now holds a total of 29,502,155 shares. This position is 0.98 % of its portfolio. The share price of the company has increased from $17.51 on 31 December 2010 to $20.31 on 31 March 2011.

Pfizer Inc. is a research-based, global biopharmaceutical company. The company operates in two segments: Biopharmaceutical and Diversified. Pfizer’s EPS forecast for the current year is $2.24 and next year is $2.27 According to consensus estimates, its top line is expected to decline 1.90% in the current year and 5.80% next year. It is trading at a forward P/E of 9.22. Out of 24 analysts covering the company, 19 are positive and have buy ratings and five have hold ratings.

The Goldman Sachs Group Inc.

BlackRock bought 398,963 shares of The Goldman Sachs Group Inc. last quarter and now holds a total of 1,771,166 shares. This position is 0.46 % of its portfolio. The share price of the company has decreased from $168.16 on 31 December 2010 to $158.6 on 31 March 2011.

The Goldman Sachs Group, Inc. is a bank holding and a financial holding company. Goldman Sachs is a global investment banking, securities and investment management company providing a range of financial services to a client base that includes corporations, financial institutions, governments and high-net-worth individuals. Goldman’s EPS forecast for the current year is $14.44 and next year is $19.06. According to consensus estimates, its top line is expected to grow 7.60% in the current year and 5.90% next year. It is trading at a forward P/E of 7.14. Out of 25 analysts covering the company, 17 are positive and have buy ratings and eight have hold ratings.

American International Group Inc.

BlackRock bought 1,779,500 shares of American International Group Inc. last quarter and now holds a total of 2,173,574 shares. This position is 0.13% of its portfolio. The share price of the company has decreased from $57.62 on 31 December 2010 to $35.14 on 31 March 2011.

American International Group, Inc. is an international insurance organization, serving customers in more than 130 countries. AIG companies are providers of life insurance and retirement services in the United States. It has three segments: Chartis, SunAmerica Financial Group and Financial Services. AIG’s EPS forecast for the current year is $3.4 and next year is $3.19. According to consensus estimates, its top line is expected to decline 19.90% in the current year and grow 4.10% next year. It is trading at a forward P/E of 8.78. Out of seven analysts covering the company, two are positive and have buy ratings, four have hold ratings and one has a sell rating.

Texas Instruments Inc.

BlackRock bought shares of 1,726,906 Texas Instruments Inc. last quarter and now holds a total of 6,265,069 shares. This position is 0.36% of its portfolio. The share price of the company has increased from $32.5 on 31 December 2010 to $34.56 on 31 March 2011.

Texas Instruments Inc. is engaged in the designing and making of semiconductors that it sells to electronics designers and manufacturers worldwide. In addition, it sells calculators and related products. As of December 31, 2010, the company had design, manufacturing or sales operations in more than 30 countries. TI has four segments: Analog, Embedded Processing, Wireless and Other. Texas’ EPS forecast for the current year is $2.50 and next year is $2.82. According to consensus estimates, its top line is expected to grow 3.10% in the current year and 5.40% next year. It is trading at a forward P/E of 12.14. Out of 40 analysts covering the company, 21 are positive and have buy ratings, 15 have hold ratings and four have sell ratings.

Philip Morris International Inc.

BlackRock bought 899,149 shares of Philip Morris International Inc. last quarter and now holds a total of 7,002,590 shares. This position is 0.76% of its portfolio. The share price of the company has increased from $58.53 on 31 December 2010 to $65.63 on 31 March 2011.

Philip Morris International Inc. is a holding company. PMI, through its subsidiaries and affiliates and their licensees, is engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States of America. Philip’s EPS forecast for the current year is $4.60 and next year is $5.08. According to consensus estimates, its top line is expected to grow 8.80% in the current year and 4.60% next year. It is trading at a forward P/E of 13.76. Out of 18 analysts covering the company, 12 are positive and have buy ratings, five have hold ratings and one has a sell rating.

Alcoa Inc.

BlackRock bought 2,783,787 shares of Alcoa Inc. last quarter and now holds a total of 9,521,826 shares. This position is 0.28% of its portfolio. The share price of the company has increased from $15.39 on 31 December 2010 to $17.66 on 31 March 2011.

Alcoa Inc. is engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its participation in mining, refining, smelting, fabricating, and recycling. During the year ended December 31, 2010, aluminum and alumina represent more than 80% of Alcoa’s revenues. Alcoa’s EPS forecast for the current year is $1.36 and next year is $1.55. According to consensus estimates, its top line is expected to grow 17.30% in the current year and 6.20% next year. It is trading at a forward P/E of 10.45. Out of 16 analysts covering the company, nine are positive and have buy ratings, four have hold ratings and three have sell ratings.

Walter Energy Inc.

BlackRock bought 320,117 shares of Walter Energy Inc. last quarter and now holds a total of 478,696 shares. This position is 0.11% of its portfolio. The share price of the company has increased from $127.84 on 31 December 2010 to $135.43 on 31March 2011.

Walter Energy, Inc. is a producer and exporter of metallurgical coal for the global steel industry and also produces steam coal, coal bed methane gas, metallurgical coke and other related products. The company operates in three business segments: Underground Mining, Surface Mining and Walter Coke. Walter’s EPS forecast for the current year is $14.19 and next year is $16.1. According to consensus estimates, its top line is expected to grow 108.30% in the current year and 14.40% next year. It is trading at a forward P/E of 7.58. Out of 15 analysts covering the company, 12 are positive and have buy ratings and three have hold ratings.

Eaton Corporation

BlackRock bought 716,079 shares of Eaton Corporation last quarter and now holds a total of 1,494,953 shares. This position is 0.14% of its portfolio. The share price of the company has increased from $50.76 on 31 December 2010 to $55.44 on 31 March 2011.

Eaton Corporation is a diversified power management company. It is engaged in the manufacturing of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use, and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton’s EPS forecast for the current year is $3.91 and next year is $4.61. According to consensus estimates, its top line is expected to grow 16.90% in the current year and 8.90% next year. It is trading at a forward P/E of 10.85. Out of 22 analysts covering the company, 12 are positive and have buy ratings and ten have hold ratings.

Medtronic Inc.

BlackRock bought 1,001,555 shares of Medtronic Inc. last quarter and now holds a total of 4,485,998 shares. This position is 0.29% of its portfolio. The share price of the company has increased from $37.09 on 31 December 2010 to $39.35 on 31 March 2011.

Medtronic, Inc. is a medical technology company. The company is engaged in research, design, manufacture and sale of products to alleviate pain, restore health and extend life. It manufactures and sells device-based medical therapies. It operates in seven segments: Cardiac Rhythm Disease Management, Spinal, CardioVascular, Neuromodulation, Diabetes, Surgical Technologies and Physio-Control. Medtronic’s EPS forecast for the current year is $3.48 and next year is $3.80. According to consensus estimates, its top line is expected to grow 4.60% in the current year and 3.80% next year. It is trading at a forward P/E of 10.31. Out of 30 analysts covering the company, 13 are positive and have buy ratings and 17 have hold ratings.

FirstEnergy Corp.

BlackRock bought 1,025,533 shares of FirstEnergy Corp. last quarter and now holds a total of 2,336,275 shares. This position is 0.14% of its portfolio. The share price of the company has increased from $37.02 on 31 December 2010 to $37.09 on 31 March 2011.

FirstEnergy Corp. is a holding company, which holds directly or indirectly eight principal electric utility operating subsidiaries: Ohio Edison Company, The Cleveland Electric Illuminating Company, The Toledo Edison Company, Pennsylvania Power Company, American Transmission Systems, Incorporated, Jersey Central Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric Company. First Energy’s EPS forecast for the current year is $3.30 and next year is also $3.30. According to consensus estimates, its top line is expected to grow 32.00% in the current year and 3.70% in the next year. It is trading at a forward P/E of 13.25. Out of 16 analysts covering the company, five are positive and have buy ratings and 11 have hold ratings.

Microsoft Corporation

BlackRock bought 1,472,370 shares of Microsoft Corporation last quarter and now holds a total of 31,215,244 shares. This position is 1.3 % of its portfolio. The share price of the company has decreased from $27.91 on 31 December 2010 to $25.39 on 31March 2011.

Microsoft Corporation is engaged in developing, manufacturing, licensing and supporting a range of software products and services for different types of computing devices. Microsoft’s EPS forecast for the current year is $2.58 and next year is $2.77. According to consensus estimates, its top line is expected to grow 11.70% in the current year and 6.40% next year. It is trading at a forward P/E of 8.91. Out of 35 analysts covering the company, 24 are positive and have buy ratings, ten have hold ratings and one has a sell rating.

Citigroup Inc.

BlackRock bought 7,961,821 shares of Citigroup Inc. last quarter and now holds a total of 118,750,542 shares. This position is 0.86 % of its portfolio. The share price of the company has decreased from $47.3 on 31 December 2010 to $44.2 on 31 March 2011.

Citigroup Inc. is a global diversified financial services holding company. Citigroup businesses provide consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2010, the company had approximately 200 million customer accounts and did business in more than 160 countries and jurisdictions. Citigroup’s EPS forecast for the current year is $4.2 and next year is $5.37. According to consensus estimates, its top line is expected to decline 7.20% in the current year and grow 5.80% next year. It is trading at a forward P/E of 7.66. Out of 24 analysts covering the company, 15 are positive and have buy ratings, six have hold ratings and three have sell ratings.

Tesoro Corporation

BlackRock bought 1,309,775 shares of Tesoro Corporation last and now holds a total of 1,778,681 shares. This position is 0.08% of its portfolio. The share price of the company has increased from $18.54 on 31 December 2010 to $26.83 on 31 March 2011.

Tesoro Corporation is an independent petroleum refiners and marketers in the United States. The company’s subsidiaries, operating through two business segments: manufacture and sell transportation fuels. Tesoro’s EPS forecast for the current year is $3.13 and next year is $2.96. According to consensus estimates, its top line is expected to grow 26.20% in the current year and 11.70% next year. It is trading at a forward P/E of 7.67. Out of 18 analysts covering the company, seven are positive and have buy ratings, eight have hold ratings and three have sell ratings.

Ameriprise Financial Inc.

BlackRock bought 564,759 shares of Ameriprise Financial Inc. last quarter and now holds a total of 1,500,750 shares in the company. This position is 0.15% of its portfolio. The share price of the company has increased from $57.55 on 31 December 2010 to $61.08 on 31 March 2011.

Ameriprise Financial, Inc. is a holding company primarily engaged in business through its subsidiaries. It provides financial planning, and products and services. Ameriprise Financial operates in five segments: Advice & Wealth Management, Asset Management, Annuities, Protection and Corporate & Other. Advice & Wealth Management segment provides financial planning and advice. Ameriprise’s EPS forecast for the current year is $5.64 and next year is $6.49. According to consensus estimates, its top line is expected to decline 7.60% in the current year and grow 2.30% next year. It is trading at a forward P/E of 9.09. Out of eight analysts covering the company, seven are positive and have buy ratings and one has a sell rating.

Dell Inc.

BlackRock bought 2,226,564 shares of Dell Inc. last quarter and now holds a total of 9,373,555 shares in the company. This position is 0.22% of its portfolio. The share price of the company has decreased from $13.55 on 31 December 2010 to $14.51 on 31 March 2011.

Dell Inc. is a technology company that offers a range of technology product categories, including mobility products, desktop personal computers, software and peripherals, servers and networking products, storage and services. Its services include a range of configurable information technology and business services, including infrastructure technology, consulting and applications, and product-related support services. Dell operates in four global business segments: Large Enterprise, Public, Small and Medium Business, and Consumer. It designs, develops, manufactures, markets, sells, and supports a range of products and services that can be customized to individual customer requirements. Dell’s EPS forecast for the current year is $1.89 and next year is $1.91. According to consensus estimates, its top line is expected to grow 4.10% in the current year and 4.60% next year. It is trading at a forward P/E of 8.25. Out of 35 analysts covering the company, 15 are positive and have buy ratings, 16 have hold ratings and four have sell ratings.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: BlackRock's Top 15 Buys