State Street Corporation Sees Record Growth Amid Market Rally
Strong Earnings Propel Stock Performance Despite Mixed Comparisons
State Street Corporation (STT), based in Boston, Massachusetts, provides a variety of financial products and services to clients globally. With a market capitalization of $28.2 billion, State Street caters to asset managers, retirement plan providers, insurance companies, foundations, and more.
Over the past year, this financial sector powerhouse has outperformed broader market indices. STT shares soared by 24.1% in 2024 and 36.9% over the last 52 weeks, exceeding the S&P 500 Index’s ($SPX) respective gains of 23.6% and 30.6% during the same periods.
Despite this impressive performance, State Street has not matched the Financial Select Sector SPDR Fund’s (XLF) YTD gains of 33% or the 42.9% growth seen over the past year.
After announcing its robust Q3 earnings on October 15, shares of State Street saw slight increases. The company reported a remarkable growth of 28.9% in assets under management (AUM), which reached $4.7 trillion, up from the previous year. This contributed to a staggering 21.1% increase in total revenues, totaling $3.3 billion, along with a 10.8% rise in total fee revenue, reaching $2.6 billion. Additionally, net income attributable to shareholders climbed by 71.4% to $682 million, while earnings per share (EPS) surged by 80.8% year-over-year to a record $2.26, beating analysts’ expectations by 8.7%.
On November 6, the STT stock price rose by 4.2%, likely fueled by the overall market surge following the recent Presidential election results.
For the ongoing fiscal year, which concludes in December, analysts predict that STT will see a 9.9% year-over-year increase in EPS, projecting it to reach $8.42. Historically, State Street has exceeded analysts’ bottom-line estimates over the past four quarters.
The stock holds a consensus rating of “Moderate Buy” from analysts, with 16 covering the stock. Of these, seven suggest a “Strong Buy,” six recommend “Hold,” one proposes “Moderate Sell,” and two indicate “Strong Sell.”
This rating breakdown shows a slight decrease in bullish sentiment compared to three months ago, when eight analysts had issued “Strong Buy” ratings.
On November 15, Wells Fargo & Company (WFC) analyst Mike Mayo affirmed a “Buy” rating for State Street, while increasing the price target to $108, the highest on Wall Street. This suggests a potential upside of 12.4% based on current price levels. At the time of this writing, STT is trading below the average price target of $99.53.
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 are for informational purposes only. For further details, please review the Barchart Disclosure Policy here.
The views and opinions expressed herein do not necessarily reflect those of Nasdaq, Inc.
