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Headquartered in Boston, Massachusetts, State Street Corporation (STT) is a leading provider of financial services to institutional investors. With a market cap of $24.40 billion, State Street is recognized for its comprehensive solutions in investment servicing, investment management, and investment research. The company’s innovative approach to asset management and custody services enables its clients to optimize their investment strategies and navigate complex financial landscapes effectively.
Shares of STT have underperformed the broader market over the past year. The stock has gained 18.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 28.1%. In 2024, the stock is up 3.8%, while the SPX has gained 17.3% on a YTD basis.
Narrowing the focus, STT's underperformance is evident when measured against the Financial Select Sector SPDR Fund (XLF). The exchange-traded fund has gained 16.7% on a YTD basis.
On Aug. 20, State Street partnered with Swiss cryptocurrency firm Taurus to expand its digital asset products and services, including tokenization and crypto custody, amid rising demand from institutional investors. Also, on Jul. 16, State Street surged over 7% after reporting Q2 revenue of $3.19 billion, exceeding the consensus estimate of $3.14 billion.
For the current fiscal year, ending in December, analysts expect STT’s EPS to grow 6.1% to $8.13 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 17 analysts covering STT stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, six “Holds,” one “Moderate Sell,” and two “Strong Sells.”
On Aug. 2, Jason Goldberg from Barclays maintained a “Buy” rating on State Street, with a price target of $103—the high price target, implying a potential upside of 28.1% from current levels. The mean price target of $91.09 represents a 13.3% premium compared to STT’s current price levels.
On the date of publication, Rashmi Kumari 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.
