We recently published a list of Jim Cramer’s Latest Calls: 10 Stocks You Should Not Miss. In this article, we are going to take a look at where BlackRock Inc (NYSE:BLK) stands against other Jim Cramer’s latest stock picks you shouldn’t miss.
Jim Cramer in a latest program on CNBC talked about earnings results from some of the top consumer and retail companies and said, as a compliment, that America has become a nation of “cheapskates” where consumers are unwilling to pay more when there’s little or no value.
“There’s something happening here, and what it is is exactly clear: we’ve become a nation of cheapskates. I say that as a compliment. Nobody gets away with charging too much anymore—not in this country, no matter the industry, perhaps even the drug industry. It’s happening now, it’s happening fast, and many companies are being left behind by the change. I see it everywhere I go—in the grocery store, online, in the mall, and, of course, in the stock market.”
Cramer talked about how restaurants that offer cheaper but quality meals are seeing a surge in their stock prices amid rising revenues. He also discussed how weight-loss drugs are impacting companies that sell alcohol products.
“American people are tired of paying up. They feel gou, they feel betrayed, they feel that the only thing about brand loyalty is that it isn’t worth a dime. They want a better deal. They’ll eagerly switch lifetime habits in order to save some money because prices are up so much that you feel like an idiot if you’re paying up.”
READ ALSO Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch and Jim Cramer on AMD and Other Stocks
For this article we watched latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s talking about. With each company we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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BlackRock Inc (NYSE:BLK)
Number of Hedge Fund Investors: 47
Talking about BLK in a latest program, Jim Cramer said:
“I’ve got to tell you Northern Trust is very good but I’ll tell you one that we’ve been buying for the travel trust, which is BlackRock, and I think it’s better. I think it’s got better growth and more consistent management.”
BlackRock Inc (NYSE:BLK) has consistently exceeded expectations on both EPS and revenues, with strong growth in both the top and bottom lines. EPS growth has been robust due to ongoing buybacks and operational improvements, while revenue growth has re-accelerated, fueled by higher asset prices, strong asset inflows, and fee growth. This strength is largely driven by significant net inflows, particularly in BlackRock Inc (NYSE:BLK)’s profitable ‘ETF’ segment. BlackRock Inc (NYSE:BLK)’s $10+ billion in cash comfortably covers the company’s core liabilities, effectively giving it a very low level of operating leverage.
However, the stock’s valuation has been a concern for many. Its P/S has increased to 7.6x, and the P/E ratio has climbed to over 25x.
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 9th on our list of Jim Cramer’s latest stock picks you shouldn’t miss. While we acknowledge the potential of BLK, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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.
