Boston, Massachusetts-based State Street Corporation (STT) provides a range of financial products and services to institutional investors. Valued at a market cap of $50.9 billion, it offers custody, accounting, and fund administration services for traditional and alternative assets, as well as multi-asset-class investments, recordkeeping, client reporting, and more.
Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” STT fits squarely in that category, with a market cap above this threshold that reflects its size and influence in the asset management industry.
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Despite its strength, STT stock slipped 5.9% from its 52-week high of $195.95, reached on Aug. 27. The stock is up 7.7% over the past three months, rallying the S&P 500 Index’s ($SPX) marginal rise during the same time frame.
www.barchart.comMoreover, the scenario remains the same in the longer term. The stock has risen 67% over the past 52 weeks, while SPX delivered 14.7% returns over the same time frame, underperforming the stock.
STT has been trading above its 200-day moving average since last year, indicating long-term bullish momentum, and below its 50-day moving average since this week.
www.barchart.comInvestors and analysts have considered STT in high regard as a result of its impressive quarterly earnings history. The company’s second-quarter earnings release on July 16 was no different. Its revenue rose 16.7% from the prior year’s quarter to $4.1 billion and surpassed the Street’s estimates, boosted by a robust increase in its assets under management, which also surpassed consensus estimates. Additionally, its adjusted EPS came in at $3.65, coming in above Wall Street’s forecasts as well.
When stacked against its rival, Apollo Global Management, Inc. (APO), STT has outperformed. Over the past year, APO stock has declined 9.2%.
Analysts’ view of STT stock is somewhat bullish. Among the 18 analysts covering the stock, the overall consensus rating is “Moderate Buy.” Its mean price target of $204.62 offers a 10.4% upside potential.
On the date of publication, Aritra Gangopadhyay 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.