Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B+ . The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, expanding profit margins and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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Highlights from the ratings report include:
- Powered by its strong earnings growth of 28.85% and other important driving factors, this stock has surged by 25.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BLK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- BLACKROCK INC has improved earnings per share by 28.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BLACKROCK INC increased its bottom line by earning $13.80 versus $12.38 in the prior year. This year, the market expects an improvement in earnings ($15.56 versus $13.80).
- BLK's revenue growth trails the industry average of 24.6%. Since the same quarter one year prior, revenues rose by 14.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 40.80% is the gross profit margin for BLACKROCK INC which we consider to be strong. Regardless of BLK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BLK's net profit margin of 27.17% compares favorably to the industry average.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Capital Markets industry average, but is greater than that of the S&P 500. The net income increased by 24.3% when compared to the same quarter one year prior, going from $555.00 million to $690.00 million.
BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. BlackRock has a market cap of $40.98 billion and is part of the financial sector and financial services industry. The company has a P/E ratio of 17.2, below the S&P 500 P/E ratio of 17.7. Shares are up 13.6% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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