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4 Reasons Why Northern Trust (NTRS) Stock is a Must-Buy Now
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It seems to be a wise idea to add Northern Trust Corp (NTRS - Free Report) stock to your portfolio now. The company’s increasing revenues are supported by improved loan balances over the years.
The Zacks Consensus Estimate for NTRS’ current-year earnings has been revised 1.3% upward over the past month, reflecting analysts’ bullish sentiments regarding its earnings growth potential. Thus, the company currently flaunts a Zacks Rank #1 (Strong Buy).
NTRS shares have gained 5.9% in the past three months compared with the 17.2% rise recorded by the industry.
Image Source: Zacks Investment Research
A few other favorable factors that make NTRS an attractive investment option right now are mentioned below.
Earnings Growth: In the last three to five years, the company witnessed earnings per share growth of 1.14%. Its earnings are projected to grow 0.64% in 2024 and 7.72% in 2025 on a year-over-year basis.
Expense Management: The company has been undertaking expense management efforts to tackle expense growth and reinstate its operating leverage over the upcoming quarters. It is focused on disciplined headcount management, vendor consolidation, rationalization of its real estate footprint and process automation. Through such efforts, Northern Trust will likely improve productivity and meet its financial targets.
Top-Line Strength: Organic growth is NTRS’ key strength, as reflected by its revenue and loan growth story. Revenues witnessed a compound annual growth rate (CAGR) of 3.5% over the last three years (2020-2023), driven by rising non-interest income and net interest income (NII), with some annual volatility. NII growth was aided by improved loan balances and higher rates.
The company’s loan and lease balance increased, seeing a CAGR of 7.7% in the last three years (ending 2023). Also, robust pipelines in the Asset Servicing and Wealth Management segments will likely drive organic growth in the upcoming period.
Superior Return on Equity (ROE): The company’s ROE of 12.44% compares favorably with the industry’s 11.86%. This shows that it reinvests its cash more efficiently than its peers.
Image: Bigstock
4 Reasons Why Northern Trust (NTRS) Stock is a Must-Buy Now
It seems to be a wise idea to add Northern Trust Corp (NTRS - Free Report) stock to your portfolio now. The company’s increasing revenues are supported by improved loan balances over the years.
The Zacks Consensus Estimate for NTRS’ current-year earnings has been revised 1.3% upward over the past month, reflecting analysts’ bullish sentiments regarding its earnings growth potential. Thus, the company currently flaunts a Zacks Rank #1 (Strong Buy).
NTRS shares have gained 5.9% in the past three months compared with the 17.2% rise recorded by the industry.
Image Source: Zacks Investment Research
A few other favorable factors that make NTRS an attractive investment option right now are mentioned below.
Earnings Growth: In the last three to five years, the company witnessed earnings per share growth of 1.14%. Its earnings are projected to grow 0.64% in 2024 and 7.72% in 2025 on a year-over-year basis.
Expense Management: The company has been undertaking expense management efforts to tackle expense growth and reinstate its operating leverage over the upcoming quarters. It is focused on disciplined headcount management, vendor consolidation, rationalization of its real estate footprint and process automation. Through such efforts, Northern Trust will likely improve productivity and meet its financial targets.
Top-Line Strength: Organic growth is NTRS’ key strength, as reflected by its revenue and loan growth story. Revenues witnessed a compound annual growth rate (CAGR) of 3.5% over the last three years (2020-2023), driven by rising non-interest income and net interest income (NII), with some annual volatility. NII growth was aided by improved loan balances and higher rates.
The company’s loan and lease balance increased, seeing a CAGR of 7.7% in the last three years (ending 2023). Also, robust pipelines in the Asset Servicing and Wealth Management segments will likely drive organic growth in the upcoming period.
Superior Return on Equity (ROE): The company’s ROE of 12.44% compares favorably with the industry’s 11.86%. This shows that it reinvests its cash more efficiently than its peers.
Other Stocks to Consider
A couple of other top-ranked stocks from the banking space are JPMorgan Chase & Co. (JPM - Free Report) and Park National Corporation (PRK - Free Report) . Both JPM and PRK currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
JPM’s earnings estimates for 2024 have moved marginally upward over the past 30 days. In the past year, its shares have risen 19.4%.
The Zacks Consensus Estimate for PRK’s current-year earnings has moved north 3.7% over the past 30 days. Its shares have risen 14.9% in the past year.