We recently published a list of 11 Best Extremely Profitable Stocks to Buy According to Analysts. In this article, we are going to take a look at where BlackRock, Inc. (NYSE:BLK) stands against other best extremely profitable stocks to buy according to analysts.
Fed’s Response to Inflation and Growth Challenges
We recently covered 10 Best Stocks to Buy Now For the Long Term, where we talked about the market outlook amidst the tariff situation and uncertainty. Here’s a piece from the article:
While the S&P 500 is hovering near correction territory, marking five years since its COVID-19 drawdown. Wyne noted that the risks appear evenly distributed between bullish and bearish outlooks. On one hand, the bears argue that softer economic data and rising consumer inflation expectations could worsen with tariff escalations, potentially leading to stagflation. On the other hand, bulls counter that weak sentiment data does not necessarily reflect hard economic indicators such as employment and retail sales, which remain robust. Wyne highlighted that bulls point out that long-term inflation expectations are still anchored near the Fed’s target, mitigating risks of a wage spiral. He pointed out that historically speaking, investing during sentiment troughs has yielded strong returns in subsequent months.
Lastly, closing his market outlook with some investment advice, Wyne suggests that balancing risks by maintaining strategic asset allocation might be a viable strategy. He added that investors should use equities for long-term capital appreciation and fixed income for hedging during slowdowns. In addition, tactical adjustments can help capitalize on emerging opportunities while adding resilience through assets like gold and infrastructure investments. Wyne stressed that despite market volatility since the COVID-19 drawdown, the S&P 500 has risen over 150%, which underscores the importance of staying invested through uncertainties.
Despite the market volatility, the Federal Reserve has decided to wait and see during the March 2025 Federal Open Market Committee meeting. On March 20, Cristina Dwyer, an analyst at J.P. Morgan Wealth Management, commented on the Federal Reserve’s decision to maintain the federal funds rate at 4.5%. She emphasized that this decision reflects the Fed’s cautious approach in light of a resilient economy and moderating inflation trends. While inflation remains above the Fed’s 2% target, core consumer prices have decelerated significantly over the past year, signaling progress in controlling price pressures. Dwyer noted that this steady economic backdrop allows the Fed to adopt a “wait-and-see” strategy, while carefully monitoring the effects of recent policy changes and external factors before making further adjustments.
Dwyer also highlighted the Fed’s decision to slow quantitative tightening by reducing its monthly cap on US Treasury redemptions from $25 billion to $5 billion starting in April. This move aligns with the broader efforts to balance monetary policy normalization without disrupting financial markets. However, she pointed out that uncertainty remains high due to recent tariff policies, which have contributed to elevated inflation projections for 2025.
For investors, Dwyer underscored the importance of reassessing portfolios in light of these developments. She advised ensuring diversification and alignment with long-term financial goals, as economic uncertainty persists and interest rate adjustments are expected later in the year. Despite weaker economic projections in the Summary of Economic Projections, such as lower GDP growth and higher unemployment forecasts, Dwyer noted that the Fed remains optimistic about continued economic expansion within a resilient macroeconomic environment.
Our Methodology
To curate the list of 11 best extremely profitable stocks to buy according to analysts we used Finviz stock screener, CNN, and Morningstar. Using the screener we aggregated a list of stocks with more than 30% TTM net profit margins and analyst upside potential of at least 20%. Next, we cross-checked the TTM net profit margin for each stock from Morningstar and analyst upside potential from CNN. Lastly, we ranked these stocks in ascending order of analysts’ average projected upside potential. We have also added hedge funds’ sentiment around each stock. Please note that the data was recorded on March 21, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A professional asset manager making an investment decision at their office.
BlackRock, Inc. (NYSE:BLK)
TTM Net Profit Margin: 31.91%
Number of Hedge Fund Holders: 53
Analyst Upside Potential: 23.43%
BlackRock, Inc. (NYSE:BLK) is an international investment management company and one of the largest asset managers in the world, with around $11.55 trillion in assets under management as of 2024. The company operates in 30 countries with clients in over 100 nations providing a range of investment and technology services to institutional and retail clients.
During the fiscal 2024, BlackRock, Inc. (NYSE:BLK) achieved record net inflows of $641 billion, contributing to a total of $11.6 trillion in assets under management. The company also experienced a 14% increase in annual revenue, surpassing $20 billion, driven by organic base fee growth, strategic acquisitions, and higher performance fees. Moreover, the operating income grew by 21%, demonstrating operational efficiency and strategic success. Looking ahead, the company is focusing on expanding into high-growth segments such as private markets and technology to maintain organic growth above its 5% target. As a result of robust results, On February 18, Craig Siegenthaler from Bank of America Securities maintained a Buy rating on the stock. It is one of the best extremely profitable 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.”
Overall, BLK ranks 10th on our list of best extremely profitable stocks to buy according to analysts. While we acknowledge the potential of BLK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BLK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
