Overview
The video reviews recent SEC filings showing BlackRock’s five largest stock purchases last quarter, discussing each company’s outlook and ranking them from most to least favorable based on the presenter’s opinion.
BlackRock’s Top 5 Stock Purchases Reviewed
Advanced Micro Devices (AMD)
- BlackRock increased its AMD position by 2%, investing nearly $400 million in Q2.
- AMD benefits from demand in AI, offering an affordable alternative to Nvidia and Intel, especially for budget-conscious buyers.
- AMD has significantly gained CPU market share from Intel and saw 32% YoY sales growth last quarter.
- The company’s forward-looking valuation is considered reasonable despite recent price gains.
- Ranked #1 due to strong growth prospects and competitive position.
Intuit (INTU)
- BlackRock increased its Intuit position by over 6%, investing more than $1 billion.
- Intuit leads in tax software and expanded with QuickBooks, Credit Karma, and Mailchimp, creating a sticky fintech ecosystem.
- Growth potential remains high due to low market penetration and ongoing expansion.
- The main drawback is its high valuation after a 700% run-up over the last decade.
- Ranked #2 for its strong business model, though AMD is favored for valuation.
Abbott Laboratories (ABT)
- BlackRock increased its ABT holding by over 3%, adding nearly $600 million.
- Abbott is a key healthcare company with stable long-term prospects and a history of steady dividend growth.
- Recent growth was boosted by pandemic test sales, but current valuation is higher than sector averages.
- The dividend yield is low (<2%), making it less attractive for income-focused investors.
- Slightly preferred over Home Depot for its business interest and consistent dividends; ranked #3.
Home Depot (HD)
- BlackRock added nearly $700 million to its Home Depot holdings.
- Home Depot dominates the home improvement market with solid financials, but faces competition from Amazon for smaller items.
- Its premium valuation and modest dividend yield are concerns for growth and income investors.
- Ranked #4 due to stability but perceived as less exciting than earlier picks.
Capital One (COF)
- BlackRock made the largest increase here (80%), adding over $4 billion in COF.
- Capital One is a leading online credit card and banking company but considered less compelling due to market alternatives.
- Stock growth has lagged other options and is seen as more boring and volatile than peers.
- Ranked last (#5) as the least attractive investment.
Final Stock Rankings
- #1: AMD
- #2: Intuit
- #3: Abbott Laboratories
- #4: Home Depot
- #5: Capital One
Recommendations / Advice
- Presenter prefers AMD and Intuit for future investment, especially if prices dip.
- Stresses personal preference for growth and value stocks, not currently owning any discussed but open to top picks.