Boston-based State Street Corporation (STT) provides a range of financial products and services to various types of investors worldwide. With a market cap of $28.9 billion, State Street serves asset managers, retirement plan providers, insurance companies, foundations, and more.
Companies worth $10 billion or more are generally described as “large-cap stocks,” State Street fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the asset management industry. It operates as one of the largest custodian banks worldwide.
The stock recently touched its 52-week high of $101.91 on Dec. 11 and is currently trading 7% below that peak. STT stock has soared 8.7% over the past three months, outpacing the Financial Select Sector SPDR Fund’s (XLF) 5.4% gains during the same time frame.
However, State Street has slightly lagged behind the financial sector over the longer term, STT gained 22.3% on a YTD basis and 22.7% over the past 52 weeks, compared to XLF’s 26.7% gains in 2024 and 27.7% returns over the past year.
To confirm the bullish trend, STT has traded consistently above its 200-day moving average since late June and mostly above its 50-day moving average since early July with minor fluctuations.
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 surging 28.9% year-over-year to a humongous $4.7 trillion. This has led to a staggering 21.1% year-over-year increase in total revenues to $3.3 billion and a 10.8% growth in total fee revenue, totaling $2.6 billion. Furthermore, the asset manager has also observed a massive surge in profitability, with its net income to shareholders surging 71.4%, 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%.
However, in the competitive arena of the financial services sector, Ameriprise Financial, Inc. (AMP) has taken the lead over State Street. AMP stock has soared over 37.9% in 2024 and 39.3% over the past year, outpacing STT.
Nevertheless, analysts remain optimistic about the stock’s prospects. STT has a consensus “Moderate Buy” rating among the 16 analysts covering it. The mean price target of $104.60 suggests a 10.4% premium to 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.
