State Street Corporation
) crafted a new 52-week high, touching $67.40 in the first half
of the trading session on May 28. The closing price of this
global banking major reflected a solid year-to-date return of
39.6%. The trading volume for the session was 5.0 million shares,
significantly higher than the average 3.1 million shares over the
last 3 months.
Despite the price appreciation, this Zacks Rank #3 (Hold) stock
still has plenty of upside left, given its strong estimate
revisions over the last 60 days and the expected year-over-year
earnings growth of 14.5% for 2013.
Moody's - the rating division of
) - had upgraded its outlook on the banking sector, and this
primarily drove State Street to achieve the new high.
Additionally, impressive first-quarter 2013 results and solid
capital deployment activities were the other positives.
After 5 years, Moody's upgraded the banking sector outlook to
'Stable' from 'Negative' on May 28. The change was based on
overall improvement in operating environment, and lower downside
risks to banks from any future economic crisis.
On Apr 19, State Street reported first-quarter 2013 earnings of
96 cents per share, beating the Zacks Consensus Estimate of 93
cents and the prior-quarter earnings of 84 cents.
Better-than-expected results came on the back of 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, 12 of the 16 estimates
for 2013 have been revised upward, raising the Zacks Consensus
Estimate by 3% to $4.52 per share. For 2014, 9 of the 16
estimates moved north, helping the Zacks Consensus Estimate
advance 3% to $5.15 per share.
Better performing banks include
JPMorgan Chase & Co.
), both of which carry a Zacks Rank #2 (Buy).
JPMORGAN CHASE (JPM): Free Stock Analysis
MOODYS CORP (MCO): Free Stock Analysis Report
STATE ST CORP (STT): Free Stock Analysis
ZIONS BANCORP (ZION): Free Stock Analysis
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