Back to top

Analyst Blog

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.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%