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BlackRock: An Anchor Stock With Upside Potential

May 03, 2021 4:19 PM ETBlackRock, Inc. (BLK)22 Comments
The European View profile picture
The European View


  • BlackRock is a giant in the financial world with management that cares more about long-term success than quick but uncertain profits.
  • Shares of the company are not a bargain, but they are not as overvalued as many other quality stocks.
  • We even see some great upside potential based on DCF and fundamental multiples.

Wooden cubes with blue letters forming the word ETF (Exchange Traded Funds) on dollar bills on a table. Investment concept photo.
Photo by Rmcarvalho/iStock via Getty Images


BlackRock (NYSE:BLK) is an excellent company with management that cares more about long-term success than quick but uncertain profits. The capital inflow into ETFs and general boom in the stock market have pushed BlackRock's shares higher. Currently, the stock is not

This article was written by

The European View profile picture
Runner of the TEV Blog | Private InvestorI am a long-term oriented investor and in my early thirties. I hold a law degree and a doctorate in law and love investing and talking about my and others' investments. I regularly write about my research and investments on various investor platforms and the TEV Blog. **My articles represent my opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions.**

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 (22)

I have owned this stock for 8 years. It’s acquisition of the ETF (ishares) business from Barclays was a brilliant move, a steal in fact (and placed a huge question mark over the custodianship of Barclays at the time). Larry Fink has done a great job with this company in a competitive market, but his achievements are still not talked about in the same breath as Musk, Bozos and Nadella. Long BLK.
BM Cashflow Detective profile picture
BlackRock is in a great position to benefit from opportunistic acquisitions. Efforts to gain market share in active stockbusiness will also drive profitability.

The broad product diversification, the sales mix and the steadily improving AUM of BlackRock should further increase sales. It can't also be a mistake to earn additional money with fees when others trade with crypto snowball systems.

$BLK TTM ROC (Joel Greenblatt) 258.48% / still good 5-year forward PEG ratio 1.74 = 148.55% actual ROC reduced by premium surcharge due to the priced in growth prospects with 109.93%.

According to my categorization a "Mega Magic Formula stock of the 2nd class".

BlackRock is currently trading at a blended P / FCF of 29.61. The analysts expect an estimated FCF growth of 22.38% by the end of 2023. Maintaining this valuation would yield an average annual total return of approximately 29%. It's just world class.

I'm long BLK

Out of my sight. Just let the thing run and buy more at dips.

"The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed."
- Peter Lynch
@BM Cashflow Detective How much of a dip would make it an opportunistic buy is the question. It's rarely at a big discount...
BM Cashflow Detective profile picture
Exactly. Regarding my approach to dips, I do not make any percentage and fixed requirements for possible future purchases in advance.

When a dip occurs, the first thing I do is look at how much the stock's fall is in relation to the RSI. Only when the situation is severely oversold do I start with a market sentiment analysis and then compare it with the current stock valuation.

The degree of my conviction then depends on the result. In other words, I then finally decide whether I will get into the stock with a smaller, medium or larger allocation.

I hope it helps.

"An intelligent investor sees an opportunity in dip than risk."
- Mohith Agadi
SleepyInSeattle profile picture
overpriced.. nuff said.
Conscentatio Excellentiae profile picture
BLK cares more about diversity, inclusion and other ESG things than it does about anything else. Yes, that is a criticism, not just of BLK but any Corporation who puts that first. I can think of several others.
@Bayern Munich I think they play that card but don’t sincerely mean it. Think about it. These guys are smart.
Conscentatio Excellentiae profile picture
@DadRuss72 thanks, but I beg to differ. Please see article on Seeking Alpha headlined .BlackRock forges ahead toward diversity and inclusion goals.
@Bayern Munich pretty sure blackrock only cares about making money and they feel that woke marketing helps them do that.
Below $400, looks enticing.
LookingAtStocks profile picture
@shogan Yeah...like back in March 2020...currently at $842.61 and I don't see it going all the way back below $400.
Consideration profile picture
Curious about your take on BLK vs TROW in the short and long terms. I hold both but am looking to consolidate sometime in the future, Aladdin is a huge factor in the future of investing and how serious BLK is taking climate change by putting their money where their mouth is. I see little out of TROW that makes me think the recent price action is more so a trend than anything else.
ckarabin profile picture
This is NOT a criticism of the author in any way, but perhaps a statement on the market in general when Blackrock is recommended not because it is a bargain but because it is not as outrageously overpriced as everything else is. Slim pickin's these days
Moats and Income profile picture
BlackRock is a bet on Biden/CCP China....
@jmerlo i'll take that bet
Tigerkz3434 profile picture
Why is this down 14% after hours?
@Tigerkz3434 Now it is up .28 what the heck is going on?
Bought this one last year at $455!!
Duras profile picture
@DadRuss72 Nice one. Wish I had. Still waiting for the right dip. Great company.
Appeals to wokers
Can’t wait to buy more on weakness some day!
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