BlackRock, Inc: Big Money Is Buying This StockBlackRock, Inc. (BLK) has been in high-gear the past 12 months surging 62%. One likely reason is due to Big Money liking the stock.
What do I mean when I say “Big Money”? That’s when a stock goes up in price alongside chunky volumes. It’s often indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And BlackRock has many fundamental qualities that are attractive.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
This sets up well for the stock going forward. But how the stock trades is what points to more upside. The Big Money has been loving the shares this past year.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all of the big money signals BLK has made the last year.
Last week there was one too. Each green bar signals big trading volumes as the stock ramped in price:
Source: www.mapsignals.com, End of day data sourced by Tiingo.com
In 2021 alone, BLK made 12 of these rare signals. Generally speaking, that means more upside is ahead. The lone red selling signal was short-lived as markets got back on track.
Now, let’s check out a few technicals grabbing my attention:
- Year-to-date performance of +23%
- 1 year outperformance vs. market (+29% vs. SPY)
Outperformance is huge for leading stocks.
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, BlackRock has been growing sales at a breakneck pace. Take a look:
- 1-year revenue growth rate (+14%)
- 3-year revenue growth rate (10.27%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, BlackRock has been a top-rated stock at my research firm, MAPsignals, multiple times the last year. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
BLK has been a constant Big Money favorite since 2020. And since its first appearance on this report in 2016, it’s up +186%:
Source: www.mapsignals.com, End of day data sourced from Tiingo.com
Let’s tie this all together.
BlackRock continues to fire on all cylinders technically and fundamentally. With many high-quality growth stocks beginning to breakout with Big Money, I like the long-term story of the stock.
The Bottom Line
The BlackRock rally likely has further upside. Big money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.
Disclosure: the author holds no position in BLK at the time of publication.
For a look at all of today’s economic events, check out our economic calendar.
Learn more about the MAPsignals process here.