BlackRock Inc Stock Buy Recommendation Reiterated (BLK)

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 ( TheStreet) -- BlackRock (NYSE: BLK) has been reiterated by TheStreet Ratings as a buy with a ratings score of A . The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, 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:
  • BLK's revenue growth has slightly outpaced the industry average of 8.2%. 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.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen 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).
  • 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 $41.55 billion and is part of the financial sector and financial services industry. The company has a P/E ratio of 17.4, below the S&P 500 P/E ratio of 17.7. Shares are up 15.2% year to date as of the close of trading on Monday.

You can view the full BlackRock Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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