BlackRock Stock Gains 20.6% in Three Months: Should You Buy It Now?

In the past three months, BlackRock, Inc.’s BLK shares have risen 20.6%, outperforming the S&P 500 index, the Zacks Finance sector and the industry. The stock has outperformed its peer, SEI Investments SEIC, while underperforming another peer, Invesco Ltd. IVZ.

Three-Month BLK Price Performance

Given the uncertain tariff policies and volatile backdrop, let us decipher whether BLK stock is worth adding to your portfolio.

Major Factors That Support BlackRock

Strategic Acquisitions: BlackRock has been expanding its footprint in domestic and global markets through acquisitions. In July 2025, it agreed to acquire ElmTree Funds and concluded the buyout of HPS Investment Partners to deepen its private market offerings. In March, it bought Preqin, a premier independent provider of private markets data, for almost $3.2 billion.

In October 2024, BLK acquired Global Infrastructure Partners to enhance its infrastructure offerings and origination capabilities. In May 2024, it completed the buyout of the remaining 75% stake in SpiderRock, solidifying its separately managed accounts offerings. 

These buyouts reflect a strategic expansion of the company’s Aladdin technology business into the rapidly growing private markets data segment. In 2023, the company took over London-based Kreos Capital. Besides these, in the past, the company has acquired numerous firms across the globe, strengthening its presence and market share.
 
Product Diversification to Boost AUM: BlackRock has been focusing on diversifying its product suite and revenue mix, which has been improving its assets under management (AUM) over the years. The company’s inorganic growth strategy also contributed to its AUM growth.

AUM witnessed a five-year (2019-2024) compound annual growth rate (CAGR) of 9.2%. The uptrend continued during the first half of 2025. As of June 30, 2025, BlackRock’s total AUM was a record $12.52 trillion, with net inflows of $152 billion in the first half of 2025. Last year, the company witnessed record net inflows of $641 billion, including industry-leading exchange-traded funds (ETFs) net inflows of $390 billion. The momentum will likely continue as efforts to strengthen the iShares unit (offering more than 1,400 ETFs globally) and ETF operations (it received approval for spot Bitcoin and ether ETFs) and enhanced focus on the active equity business are likely to offer support.

This June, the company’s India-based joint venture, Jio BlackRock Investment Advisers, obtained approval from the Securities and Exchange Board of India (SEBI) to operate as an investment adviser in India.

Such product diversification efforts are likely to bolster BLK’s revenue mix, reduce revenue concentration risk and allow it to serve a broader range of clients, aiding AUM growth. The company’s GAAP revenues witnessed a CAGR of 7% over the last five years ended 2024, with the momentum continuing in the first six months of 2025.

Additionally, the combination of HPS Investment, Preqin and GIP data with BLK’s alternative asset management platform, eFront, will drive solid revenue growth going forward.

Sales Estimates

Impressive Capital Distributions: On the back of a solid balance sheet, BlackRock announced a 2% hike in its quarterly dividend to $5.21 per share in January 2025. BLK has increased its dividend five times in the last five years with an annualized dividend growth rate of 7.3%.

Also, the company has a 45% dividend payout ratio, while its peers, SEI Investments and Invesco, have 18% and 48% payout ratios, respectively.

Dividend Yield

Also, BlackRock has a share repurchase plan in place. In the first half of 2025, the company repurchased $750 worth of shares. The company expects to repurchase at least $375 million worth of shares per quarter in 2025.

Bullish Analyst Sentiments for BLK

Over the past week, the Zacks Consensus Estimate for 2025 and 2026 earnings of $47.35 and $51.91, respectively, has been revised marginally upward.

Estimate Revision Trend

The projected figures imply growth of 8.6% and 9.6% for 2025 and 2026, respectively.

How to Play BlackRock Stock Now

In terms of valuation, BLK’s price-to-book ratio (P/B) of 3.57X is lower than the industry's 3.92X. Thus, the stock is trading at a discount. This suggests that investors may be paying a lower price relative to the company's expected earnings growth.

Price-to-Book Ratio Trend

On the other hand, SEI Investments has a P/B of 4.64X, while Invesco's P/B is 0.63X. Thus, BlackRock stock is inexpensive compared with SEI Investments, while it is trading at a massive premium against Invesco.
  
BlackRock is well-positioned to capitalize on acquisitions and expand its presence in the fast-growing private markets. The record AUM level and product diversification efforts are other tailwinds for the company. Moreover, lower valuation compared to the industry and bullish investor sentiments are other positives.
 
Further, BlackRock’s growth initiatives have helped generate higher returns. This is demonstrated by the company’s return on equity (ROE) of 15.83% compared with the industry’s ROE of 10.60%.

Return on Equity Trend

However, a steady rise in expenses is a headwind. The company recorded a five-year CAGR of 7.4% (ended 2024), mainly due to higher general and administrative (G&A) costs. The uptrend continued in the first half of 2025. Overall costs are expected to remain elevated due to the company’s business expansion plans and persisting inflationary pressures. Management expects core G&A expenses in 2025 to remain in the low-teens percentage range (including the impact of the HPS acquisition).

Further, given rising geopolitical risks, foreign currency fluctuations and the global impact of tariff policies, BlackRock is likely to witness subdued overseas revenues, which will likely weigh on its growth.
 
Thus, investors should watch out for these concerns and monitor how BlackRock integrates the acquisitions into its operations and generates solid profits before making any investment decision. Those who already own the stock can continue holding it for long-term gains.

Currently, BLK carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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