We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Northern Trust (NTRS) Reflects Revenue Growth: Time to Hold?
Read MoreHide Full Article
In the Q1 earnings season, the Finance sector turned out to be one of the best performers. So, we thought of bringing up a stock from the sector that reflects strong fundamentals and solid long-term growth opportunities.
Northern Trust Corporation (NTRS - Free Report) is one such stock. Though elevated expenses remain a concern, Northern Trust remains focused on initiating new business to tackle macroeconomic headwinds. Also, rising revenues will bolster organic growth.
Organic growth throughout the current year and easing margin pressure aided the company to jump 19.7% compared with 25.8% growth recorded by the Zacks categorized Regional Banks-Major industry, over the past one year.
Moreover, the company’s earnings estimates climbed 2.4% for the current year, over the last 60 days. As a result, it currently carries a Zacks Rank #2 (Buy).
Organic growth remains a key strength at Northern Trust, as displayed by its revenue growth story. Revenue witnessed a CAGR of 6.2% over the last five years (2012–2016), with the increasing trend continuing in first-quarter 2017 as well.
After years of facing margin pressure due to low rates, Northern Trust is finally looking forward to gradual improvement in the rate environment. In 2016 and first-quarter 2017, net interest margin improved on a year-over-year basis, after recording a declining trend over the past several years. In addition, subsequent to the Fed rate hike in Mar 2017, the company increased its prime lending rate to 4.00%. Also, management is optimistic about favorable impact of the rate hike on margins in the quarters ahead, with a continued rise in loan demand and higher yields on earning assets.
Against the backdrop of macroeconomic headwinds, Northern Trust, with increased aggression, was focused on initiating new business over the last couple of years. The new business was strong, with the company continuing to add institutional clients and assets along with favorable equity markets. In addition, Northern Trust’s innovative technology-driven hedge fund administration capabilities brought to the marketplace via Northern Trust Hedge Fund Services clearly provides an attractive proposition to the clients.
Northern Trust exhibited its capital strength as it successfully cleared the 2016 Dodd-Frank Act Stress Test (DFAST). Further, the company remains committed to enhance shareholders’ value. Notably, in Jun 2016, the company’s capital plan received the Federal Reserve’s approval following which it increased quarterly common stock dividend to 38 cents per share in Jul 2016. Additionally, the plan included a common share repurchase program of up to $275 million to be carried out over the period between Jul 2016 and Jun 2017.
Stocks to Consider
M&T Bank Corporation (MTB - Free Report) has been witnessing upward estimate revisions for the last 30 days. Over the last six months, the company’s share price has been up more than 8.9%. It boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comerica Incorporated (CMA - Free Report) has been witnessing upward estimate revisions for the last 60 days. Additionally, the stock jumped over 6.3% over the past six months. It currently sports a Zacks Rank #1.
The PNC Financial Services Group, Inc. (PNC - Free Report) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 7.7% over the last six months. It presently holds a Zacks Rank #2.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Northern Trust (NTRS) Reflects Revenue Growth: Time to Hold?
In the Q1 earnings season, the Finance sector turned out to be one of the best performers. So, we thought of bringing up a stock from the sector that reflects strong fundamentals and solid long-term growth opportunities.
Northern Trust Corporation (NTRS - Free Report) is one such stock. Though elevated expenses remain a concern, Northern Trust remains focused on initiating new business to tackle macroeconomic headwinds. Also, rising revenues will bolster organic growth.
Organic growth throughout the current year and easing margin pressure aided the company to jump 19.7% compared with 25.8% growth recorded by the Zacks categorized Regional Banks-Major industry, over the past one year.
Moreover, the company’s earnings estimates climbed 2.4% for the current year, over the last 60 days. As a result, it currently carries a Zacks Rank #2 (Buy).
Organic growth remains a key strength at Northern Trust, as displayed by its revenue growth story. Revenue witnessed a CAGR of 6.2% over the last five years (2012–2016), with the increasing trend continuing in first-quarter 2017 as well.
After years of facing margin pressure due to low rates, Northern Trust is finally looking forward to gradual improvement in the rate environment. In 2016 and first-quarter 2017, net interest margin improved on a year-over-year basis, after recording a declining trend over the past several years. In addition, subsequent to the Fed rate hike in Mar 2017, the company increased its prime lending rate to 4.00%. Also, management is optimistic about favorable impact of the rate hike on margins in the quarters ahead, with a continued rise in loan demand and higher yields on earning assets.
Against the backdrop of macroeconomic headwinds, Northern Trust, with increased aggression, was focused on initiating new business over the last couple of years. The new business was strong, with the company continuing to add institutional clients and assets along with favorable equity markets. In addition, Northern Trust’s innovative technology-driven hedge fund administration capabilities brought to the marketplace via Northern Trust Hedge Fund Services clearly provides an attractive proposition to the clients.
Northern Trust exhibited its capital strength as it successfully cleared the 2016 Dodd-Frank Act Stress Test (DFAST). Further, the company remains committed to enhance shareholders’ value. Notably, in Jun 2016, the company’s capital plan received the Federal Reserve’s approval following which it increased quarterly common stock dividend to 38 cents per share in Jul 2016. Additionally, the plan included a common share repurchase program of up to $275 million to be carried out over the period between Jul 2016 and Jun 2017.
Stocks to Consider
M&T Bank Corporation (MTB - Free Report) has been witnessing upward estimate revisions for the last 30 days. Over the last six months, the company’s share price has been up more than 8.9%. It boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comerica Incorporated (CMA - Free Report) has been witnessing upward estimate revisions for the last 60 days. Additionally, the stock jumped over 6.3% over the past six months. It currently sports a Zacks Rank #1.
The PNC Financial Services Group, Inc. (PNC - Free Report) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 7.7% over the last six months. It presently holds a Zacks Rank #2.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>