Is BlackRock Stock (BLK) a Good Investment? (2024)

As of September 12, 2024, BlackRock Inc had a $129.9 billion market capitalization, putting it in the 99th percentile of companies in the Investment Management & Fund Operators industry.

Currently, BlackRock Inc’s price-earnings ratio is 22.0. BlackRock Inc’s trailing 12-month revenue is $18.7 billion with a 32.4% profit margin. Year-over-year quarterly sales growth most recently was 7.7%. Analysts expect adjusted earnings to reach $41.605 per share for the current fiscal year. BlackRock Inc currently has a 2.3% dividend yield.

Before you choose to buy, sell or hold BlackRock Inc stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (BLK) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at BlackRock Inc’s stock grades for value, growth and quality. Learn more about A+ Investor here!

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

BlackRock Inc has a Value Score of 20, which is Ultra Expensive.

As of September 12, 2024, BlackRock Inc had a $129.9 billion market capitalization, putting it in the 99th percentile of companies in the Investment Management & Fund Operators industry.

Currently, BlackRock Inc’s price-earnings ratio is 22.0. BlackRock Inc’s trailing 12-month revenue is $18.7 billion with a 32.4% profit margin. Year-over-year quarterly sales growth most recently was 7.7%. Analysts expect adjusted earnings to reach $41.605 per share for the current fiscal year. BlackRock Inc currently has a 2.3% dividend yield.

Before you choose to buy, sell or hold BlackRock Inc stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (BLK) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at BlackRock Inc’s stock grades for value, growth and quality. Learn more about A+ Investor here!

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. To decide if BlackRock Inc stock is a buy or sell, you’ll want to evaluate its fair market price or intrinsic value.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81-100 are considered deep value, those with a score between 61-80 are value and so on.

BlackRock Inc has a Value Score of 20, which is Ultra Expensive.

Growth Grade:

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the Growth Score and assign it a letter grade, the percentile ranks for each of the three individual components‐consistency of annual sales growth, five‐year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered Very Weak, while those in the top 20% receive A grades, which are considered Very Strong.

BlackRock Inc has a Growth Score of 62, which is Strong.

Estimate Revisions Grade:

The Earnings Estimate Revisions Score considers the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. The Earnings Estimate Revisions Score is based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

BlackRock Inc has an Earnings Estimate Revisions Score of 56, which is Neutral.

In addition to Value, Growth and Estimate Revisions, A+ Investor also provides grades for Momentum and Quality.

The Momentum Grade helps uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the Quality Grade is the percentile rank of the composite return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F—Score.

These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether BlackRock Inc’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.

Overall, BlackRock Inc stock has a Value Grade of F, Growth Grade of B, Earnings Estimate Revisions Grade of C.

Whether or not you should buy BlackRock Inc stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.

Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how BlackRock Inc stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.

You can use the information about how BlackRock Inc is graded to determine if you should invest in this stock. However, you should decide whether BlackRock Inc’s stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets—without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

So, if you’re still on the fence about whether BlackRock Inc is a buy, sell or hold, you can utilize AAII’s expansive and robust screening tools like A+ Investor to help with your decision.

A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.