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Northern Trust Corporation (NTRS), headquartered in Chicago, Illinois, offers wealth management, asset servicing, asset management, and banking solutions. Valued at $22.5 billion by market cap, the leading asset manager manages approximately $1 trillion in assets under management offering investment strategies that appropriately compensate investors for risk. Its services include mutual funds, ETFs, multi-asset solutions, retirement plan solutions, and outsourced investment solutions.
Shares of this market leader in wealth management services have outperformed the broader market over the past year. NTRS has gained 42.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 23%. In 2025, NTRS stock is up 10.8%, surpassing SPX’s 4% rise on a YTD basis.
Zooming in further, NTRS’ outperformance is also apparent compared to iShares U.S. Financials ETF (IYF). The exchange-traded fund has gained about 31.5% over the past year. Moreover, NTRS’ double-digit returns on a YTD basis outshine the ETF’s 6.1% gains over the same time frame.
NTRS' outperformance is fueled by strong organic growth and rising revenues, supported by expanding non-interest income, increasing NII, and a growing client base anticipating a loan rebound. Its focus on wealth management is expected to further expand the lending portfolio. Additionally, the robust pipelines in the asset servicing segment are poised to boost the top-line while its disciplined cost management initiatives have enhanced operational efficiency and productivity. Moreover, interest rate-cuts and a decent economic expansion are anticipated to offer support and boost NTRS’ margins.
On Jan. 23, NTRS shares closed up by 2% after reporting its Q4 results. Its EPS came in at $2.26, up 334.6% from the year-ago quarter. The company’s revenue stood at $2 billion, up 26% year over year.
For fiscal 2025, ending in December, analysts expect NTRS’ EPS to grow 7.4% to $8.27 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 15 analysts covering NTRS stock, the consensus is a “Hold.” That’s based on one “Strong Buy” rating, one “Moderate Buy,” 11 “Holds,” and two “Strong Sells.”
This configuration is less bearish than three months ago, with one analyst suggesting a “Moderate Sell.”
On Feb. 20, Morgan Stanley (MS) analyst Betsy Graseck maintained a “Hold” rating on NTRS with a price target of $138, implying a potential upside of 21.6% from current levels.
The mean price target of $118.57 represents a 4.4% premium to NTRS’ current price levels. The Street-high price target of $136 suggests an upside potential of 19.8%.
