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Shares of State Street Corporation (STT - Analyst Report) achieved a new 52-week high, touching $68.86 at the end of the trading session on Jul 9. The closing price of this global banking major reflected a solid year-to-date return of 43.6%.

Despite the strong price appreciation, this stock has plenty of upside left, given its estimate revisions over the last 60 days and expected year-over-year earnings growth of 15.3% for 2013.

Growth Drivers

The expected year-over-year growth rate of 17.5% for second-quarter, impressive first-quarter 2013 results and solid capital deployment activities were the primary growth drivers for State Street.

The company is scheduled to announce second-quarter results on Jul 19. The Zacks Consensus Estimate for the quarter is pegged at $1.19 per share. The Zacks Earnings ESP (Read:Zacks Earnings ESP: A Better Method) for State Street is 0.00% for the second quarter. This, along with its Zacks Rank #2 (Buy), lowers the chances for a positive earnings surprise.

Moreover, in April, State Street’s first-quarter earnings beat the Zacks Consensus Estimate. Better-than-expected results were driven by an increase in fee income, partially offset by higher operating expenses and a decrease in net interest income.

Estimate Revisions Show Potency

For State Street, over the last 60 days, 6 of the 14 estimates for 2013 have been revised upward, raising the Zacks Consensus Estimate by nearly 1% to $4.55 per share. For 2014, 6 of the 14 estimates moved north, helping the Zacks Consensus Estimate advance 1.2% to $5.19 per share.

Other well performing banks include JPMorgan Chase & Co. (JPM - Analyst Report), KeyCorp. (KEY - Analyst Report) and Northern Trust Corporation (NTRS - Analyst Report). All of them carry the same Zacks Rank as State Street.

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