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Boston-based State Street Corporation (STT) provides various financial products and services to various categories of investors worldwide. With a market cap of $25.7 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.
State Street touched its 52-week high of $87.26 on Aug. 30 and is now trading marginally below that peak. STT gained 20.9% over the past three months, outpacing the Dow Jones Industrials Average’s ($DOWI) 7.3% gains during the same time frame.
Over the longer time frame, STT looks even more appealing. STT gained 20.7% over the past 52 weeks and 11.9% in 2024, outperforming DOWI’s 20.2% gains over the past year and 10.4% returns on a YTD basis.
To confirm the bullish trend, STT has traded above its 200-day moving average since late November 2023 and above its 50-day moving average since mid-July with slight fluctuations.
Shares of State Street surged 7.5% following the release of its better-than-expected Q2 earnings report on Jul. 16. The financial giant reported a notable 2.6% annual revenue growth to $3.2 billion, exceeding Wall Street’s expectations. Additionally, its net interest income grew by 6.4%, totaling $735 million. Although its EPS fell to $2.15 from the year-ago quarter’s EPS of $2.17 due to a fall in net margins, it surpassed the EPS estimates by 7%.
State Street’s competitor, Ameriprise Financial, Inc. (AMP), has outperformed STT over the past year. AMP gained 30.3% over the past 52 weeks and 19.1% on a YTD basis.
Among the 17 analysts covering the STT stock, the consensus rating is a “Moderate Buy.” The mean price target of $91.34 represents a potential upside of 5.4% from 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.
