8. BlackRock, Inc. (NYSE:BLK)
Forward P/E Ratio: 20.07
Number of Hedge Fund Holders: 53
Analyst Upside Potential: 18.75%
BlackRock, Inc. (NYSE:BLK) is an international investment management company that helps individuals, institutions, and governments manage money by investing it in various financial products. It manages money by investing in various types of assets including stocks, bonds, and other investment vehicles. Moreover, the company also offers advanced technology platforms like Aladdin, which helps financial institutions manage their investments and assess risks.
On February 18, Craig Siegenthaler from Bank of America Securities maintained a Buy rating on the stock. BlackRock, Inc. (NYSE:BLK) released its fiscal fourth quarter results for 2024, highlighting record net inflows of $641 billion in 2024, with assets under management (AUM) reaching $11.6 trillion. This growth was driven by strong client activity and strategic acquisitions. In addition, the company also grew its annual revenue by 14% to over $20 billion, with operating income growing by 21%.
Looking ahead, the company aims to maintain organic growth above its 5% target by expanding into high-growth segments like private markets and technology. Moreover, it is also deepening client relationships by offering integrated portfolios and leveraging its technology to provide seamless public and private market solutions. It is one of the most undervalued high-quality stocks to buy according to analysts.
The London Company Large Cap Strategy stated the following regarding BlackRock, Inc. (NYSE:BLK) in its Q3 2024 investor letter:
“BlackRock, Inc. (NYSE:BLK) – Shares of BLK rallied during 3Q as organic growth improved sequentially. Our long-term view of BLK has not changed. In the near-term, strong equity market performance is supportive of AUM and fee growth, and, visibility on declining interest rates is a potential tailwind to the fixed income ETF business. We continue to view BLK as a long-term share gainer with a broad spectrum of solutions, and we appreciate the strong balance sheet and steady capital return.”