New 52-Week High for State Street - Analyst Blog


Shares of State Street Corporation ( STT ) 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 ), KeyCorp. ( KEY ) and Northern Trust Corporation ( NTRS ). All of them carry the same Zacks Rank as State Street.

JPMORGAN CHASE (JPM): Free Stock Analysis Report

KEYCORP NEW (KEY): Free Stock Analysis Report

NORTHERN TRUST (NTRS): Free Stock Analysis Report

STATE ST CORP (STT): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: JPM , KEY , NTRS , STT

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