BlackRock Stock Rocks. Should You Buy It Here?

• BlackRock (BLK) shows strong technical momentum and is trading near its 52-week high.
• BLK maintains an 88% “Buy” Barchart opinion.
• Shares are up nearly 30% over the past year.
• Analyst sentiment is overwhelmingly positive, with most major firms rating BLK a “Buy.” 

Today’s Featured Stock

Valued at $174 billion, BlackRock (BLK), together, with its subsidiaries, is a leading publicly traded investment management firm. Product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. Products are offered directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares and BlackRock exchange-traded funds, separate accounts, collective trust funds and other pooled investment vehicles. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. BLK checks those boxes. Since the Trend Seeker signaled a buy on July 16, the stock gained 3.8%.

More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.

 

BLK Price vs. Daily Moving Averages:

www.barchart.com

Barchart Technical Indicators for BlackRock

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

BlackRock shares hit a new 52-week high on Aug. 13, touching $1,171.89 in intraday trading.

• BlackRock has a Weighted Alpha of +28.72.
• BLK has an 100% “Buy” opinion from Barchart.
• The stock gained 29.95% over the past year.
• BLK has its Trend Seeker “Buy” signal intact.
• BlackRock is trading above its 20-, 50-, and 100-day moving averages.
• The stock made 8 new highs and gained 2.62% in the last month.
• Relative Strength Index (RSI) is at 53.90%.
• There’s a technical support level around $1,117.35.

Don’t Forget the Fundamentals

• $174 billion market capitalization.
• 24.14x trailing price-earnings ratio.
• 1.86% dividend yield.
• Revenue is projected to grow 14.57% this year and another 13.33% next year.
• Earnings are estimated to increase 9.03% this year and an additional 10.19% next year.

Analyst and Investor Sentiment on BlackRock

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are bullish on BLK, and so is CFRA’s MarketScope Advisor.

• The Wall Street analysts tracked by Barchart have issued 13 “Strong Buy,” 3 “Moderate Buy,” and 2 “Hold” opinions on the stock.
• Their price targets are between $1,090-$1,252.
• Value Line gives the stock its below-average rating but has a price target of $1,316. Makes no sense.
• CFRA’s MarketScope Advisor gives the stock a “4-Star Buy” rating and a price target of $1,245.
• Morningstar thinks the stock is fairly valued.
• 1,483 individual investors on Motley Fool think the stock will beat the market while 248 think it won’t.
• 88,590 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line on BlackRock

BlackRock currently has momentum and is hitting new highs.

I caution that BLK is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.