State Street Corporation: Strong Earnings Boost Stock Performance
Boston-based State Street Corporation (STT) stands out in the financial industry, offering a variety of products and services to investors globally. With a market capitalization of $28.9 billion, State Street caters to asset managers, retirement plan providers, insurance companies, and foundations.
A Key Player in Asset Management
Recognized as a large-cap stock, State Street’s impressive market cap places it among the heavyweights in the asset management sector. This reflects its significant size and influence as one of the largest custodian banks in the world.
Stock Performance Highlights
The company’s stock recently reached a 52-week high of $101.91 on December 11 and is currently trading about 7% lower than that peak. Over the past three months, STT has increased by 8.7%, outperforming the Financial Select Sector SPDR Fund (XLF), which gained 5.4% during the same period.
Comparing Year-to-Date Gains
Despite its recent momentum, State Street’s long-term performance has slightly lagged behind the wider financial sector. Year-to-date, STT has gained 22.3%, while the XLF has risen 26.7%. Over the last 52 weeks, STT saw a 22.7% increase, compared to XLF’s 27.7% gains.
Impressive Q3 Earnings Report
State Street saw a slight uptick in shares following its strong Q3 earnings released on October 15. The firm reported a remarkable 28.9% year-over-year growth in assets under management, totaling $4.7 trillion. This surge contributed to a 21.1% rise in total revenues, reaching $3.3 billion, along with a 10.8% increase in total fee revenue, amounting to $2.6 billion. Notably, the net income attributable to shareholders soared by 71.4%, reaching $682 million, while earnings per share jumped 80.8% year-over-year to a record $2.26, exceeding analysts’ estimates by 8.7%.
Market Competition
In the competitive financial services sector, Ameriprise Financial, Inc. (AMP) is outpacing State Street. In 2024, AMP stock has surged by over 37.9%, with a 39.3% increase over the past year, outperforming STT.
Analyst Outlook
Despite the competition, analysts retain an optimistic view on State Street’s future. STT holds a consensus “Moderate Buy” rating among 16 analysts, with a mean price target of $104.60, indicating a potential 10.4% upside from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
