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Boston, Massachusetts-based State Street Corporation (STT) provides various financial products and services to various investors worldwide. With a market cap of $28.2 billion, State Street serves asset managers, retirement plan providers, insurance companies, foundations, and more.
The financial sector giant has outperformed the broader market over the past year. STT stock have surged 24.1% in 2024 and 36.9% over the past 52-week period, outpacing the S&P 500 Index’s ($SPX) gains of 23.6% in 2024 and 30.6% over the past year.
However, State Street has lagged behind the Financial Select Sector SPDR Fund’s (XLF) 33% gains on a YTD basis and 42.9% returns over the past year.
Shares of State Street experienced marginal gains after the release of its impressive Q3 earnings on Oct. 15. The company has observed a massive growth in assets under management, with its AUM increasing 28.9% year-over-year to a humongous $4.7 trillion by the end of Q3. This has led to a staggering 21.1% year-over-year growth in total revenues to $3.3 billion and a 10.8% growth in total fee revenue, totaling $2.6 billion. Moreover, the asset manager has also observed a massive surge in profitability with a 71.4% growth in net income to shareholders, reaching $682 million. Meanwhile, its EPS soared 80.8% year-over-year to a record $2.26, surpassing analysts’ estimates by a notable 8.7%.
More recently, STT stock price surged 4.2% on Nov. 6 driven by the broader market rally observed after the announcement of Presidential election results.
For the current fiscal year, ending in December, analysts expect STT to report a 9.9% year-over-year growth in EPS to $8.42. Moreover, the company has a robust earnings surprise history. It has surpassed analysts’ bottom-line estimates in the past four quarters.
STT stock has a consensus “Moderate Buy” rating overall. Among the 16 analysts covering the stock, seven recommend “Strong Buy,” six advise “Hold,” one suggests “Moderate Sell,” and two advocate a “Strong Sell” rating.
This configuration is slightly less bullish than three months ago, with eight “Strong Buy” ratings on the stock.
On Nov. 15, Wells Fargo & Company (WFC) analyst Mike Mayo maintained a “Buy” rating while raising the price target to $108 - the Street-high price target. This implies a potential upside of 12.4% from the current price levels. As of writing, STT is trading below the mean price target of $99.53.
