I see an attractive opportunity in BlackRock, although I would not buy all at once after a 12.1% rise in one month and with the stock trading just 0.8% below its annual high. The business is showing clear improvement: revenue grew 19.1% and net income 25.4% in Q3 2026, with a 21.4% net margin, up 1.1 p.p. In addition, free cash flow increased 95.0% to $2,605m, while the debt-to-equity ratio fell to 0.26. The valuation of 27.7x trailing-twelve-month EPS moderates to 21.0x based on estimated 2026 EPS and 18.7x in 2027, despite projected growth of 63.8% and 12.1%. The dividend yield is 1.8% and the payout ratio 51%. Its beta of 1.38 calls for caution given asset managers’ sensitivity to the market. I am initiating a partial position.
I am buying partially on EPS growth, strong cash generation and a moderating forward P/E, while limiting risk after the rally.