Top Five Large-Cap Stocks

Each week, TheStreet.com Ratings compiles a list of the top five stocks in five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap -- and publishes these lists in the Ratings section of our Web site.

This list, last updated Nov. 9, is based on data from the close of the previous trading session. Today, large-cap stocks are in the spotlight. These are stocks of companies with market capitalizations of over $10 billion that rank near the top of all stocks rated by our proprietary quantitative model, which looks at more than 60 factors.

The stocks must also be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. They are ordered by their potential to appreciate.

Note that no provision is made for off-balance-sheet assets such as unrealized appreciation/depreciation of investments, market value of real estate or contingent liabilities that might affect book value. This could be material for some companies with large underfunded pension plans.

BlackRock(BLK), an investment manager, has been rated buy since October 2005. The company has an impressive record of growth in revenue, net income and earnings per share, along with good cash flow from operations. BlackRock recently reported third-quarter earnings of $255.2 million, or $1.94 a share, up from $18.9 million, or 28 cents a share, a year ago.

These strengths should outweigh the fact that the company's return on equity has been disappointing. Securities-brokerage and investment-banking firms and other stocks in this sector are highly sensitive to interest rate changes, equity market performance and the general health of the economy.