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BlackRock Is A Good Bet For The Future

May 06, 2020 12:50 PM ETBlackRock, Inc. (BLK)9 Comments
AllStarTrader profile picture


  • BlackRock is off its highs and offers investors a chance to own a world-class company at an attractive price.
  • The dividend has been growing and offers an above-average yield for the company's trading history.
  • The company will continue to grow and reward investors along the way.
  • Buying shares on weakness will serve new investors well.

Deal Watch: BlackRock

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Shares of BlackRock (NYSE:BLK) have pulled back along with the broader market and particularly financials. Despite an excellent management team and exceptional operating performance, the market has punished the company along with the rest. The company last reported assets under management of $6.47 trillion. A staggering amount. With continued strong execution and operating performance the shares will offer investors attractive returns. With an attractive yield, BlackRock should continue to grow at an attractive rate, offering those looking for income with a stream of cash. While shares have rallied off the lows, any weakness should be met as an opportunity.


BlackRock has performed well in the most recent quarter which only began to see the effects of the economic shut down at the end. The company beat both the top and bottom lines.

Source: Seeking Alpha

The company saw revenue growth of 10.7% thanks to heavy growth in both performance fees and technology services. While this is sure to decline in the second quarter, it is good to know the company continues to grow at a healthy pace even with as much under management as it currently has. New inflows also grew by over $64 billion even amid the market decline.

The company has a diversified revenue base across the globe that provide insulation against any single dependent risk from affecting the business.

Source: Earnings Presentation

A notably large amount of the company's fees and AUM are driven from the Americas. This should be viewed as a positive as American markets and investors tend to have a bit more stability and a positive risk/reward ratio with an independent democracy providing as such. Overall the portfolio is well diversified with different products, clients, and styles providing different revenue streams. This helps oftentimes when perhaps one category or segment is under-performing.

This article was written by

AllStarTrader profile picture
Started investing at 11 years old. Self taught, taking an analytical all around thought process approach to investing. Look at everything from all angles and every view and you will never miss anything. I believe in collecting dividends from most of my investments, just as an investment in a private company would return profits, so should my stocks. I prefer to invest based on fundamental values, but will consider the story of the company itself when necessary.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (9)

reh4082 profile picture
Nice article - today the stock dropped 7% (May 12) Did the drop have anything to do with the PNC bank announcement?
Today's drop has everything to do with PNC cashing out it's BLK stake. There will be volatility in this stock as close to 31 million shares will be sold. 2+ million shares will be bought by BLK and PNC will keep 1 million shares out of 34.2 million shares held by PNC.
BM Cashflow Detective profile picture
BLK is one of my largest investments in the area of asset management. The company is just too good to ignore when the market declines. Expansion of market share and low debt are two of many convincing arguments to buy. BLK's debt ratio has decreased from 31.9% to 17.4% in the past 5 years. There are currently not many companies that reduce their debt. Currently a hold. But as soon as BLK is traded at a reasonable discount to fair value, I will buy more shares.
@BM Cashflow Detective What % discount would you like for a company of this type? 10%? 20%? 30%?
BM Cashflow Detective profile picture
@Garmeon Yu

The higher the discount, the more shares I would buy. The less, the less I would buy. No general definition.
BLK is good to own cuz they(the media) won't turn on their own. Fink is something else :(
Skip Kapur profile picture
Great company, but at most at reasonable valuation. Below $420, and it will get there during fluctuations, would be a time for new owners to buy, in my view.

$BLK is $2.67% of my portfolio and a core holding.
BlackRock is going to get crushed real soon. It will see enormous outflows in the coming years. Just a warning.
vancityinc profile picture
BLK does need to really build up its offerings outside of stock ETFs so that they can retain AUM in market downturns. Bonds, commodities, inverse correlation strategies.
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