California State Teachers Retirement System increased its stake in shares of State Street Corporation (NYSE:STT – Free Report) by 16,194.0% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 76,843,386 shares of the asset manager’s stock after acquiring an additional 76,371,782 shares during the period. California State Teachers Retirement System owned about 27.97% of State Street worth $13,032,638,000 as of its most recent SEC filing.
Other institutional investors have also added to or reduced their stakes in the company. Wedmont Private Capital increased its holdings in State Street by 4.0% during the 2nd quarter. Wedmont Private Capital now owns 6,906 shares of the asset manager’s stock worth $1,245,000 after purchasing an additional 264 shares in the last quarter. HB Wealth Management LLC boosted its position in shares of State Street by 4.1% during the second quarter. HB Wealth Management LLC now owns 13,737 shares of the asset manager’s stock worth $2,330,000 after buying an additional 540 shares during the period. Saudi Central Bank boosted its position in shares of State Street by 89.2% during the second quarter. Saudi Central Bank now owns 19,511 shares of the asset manager’s stock worth $3,309,000 after buying an additional 9,201 shares during the period. Angeles Wealth Management LLC grew its holdings in shares of State Street by 6.7% during the second quarter. Angeles Wealth Management LLC now owns 2,496 shares of the asset manager’s stock worth $423,000 after buying an additional 156 shares in the last quarter. Finally, Compass Financial Management LLC bought a new position in shares of State Street during the second quarter worth about $1,424,000. 87.44% of the stock is owned by institutional investors.
State Street Trading Down 1.2% Shares of State Street stock opened at $191.97 on Wednesday. State Street Corporation has a 12-month low of $104.64 and a 12-month high of $195.93. The stock has a market cap of $52.73 billion, a P/E ratio of 16.93, a P/E/G ratio of 0.92 and a beta of 1.41. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 1.04. The business’s 50 day moving average is $185.45 and its 200-day moving average is $159.20.
State Street (NYSE:STT – Get Free Report) last released its earnings results on Thursday, July 16th. The asset manager reported $3.65 earnings per share for the quarter, beating the consensus estimate of $3.34 by $0.31. The business had revenue of $4.05 billion during the quarter, compared to analysts’ expectations of $3.88 billion. State Street had a net margin of 15.02% and a return on equity of 15.26%. The firm’s revenue was up 23.3% on a year-over-year basis. During the same period last year, the business earned $2.04 earnings per share. Equities research analysts predict that State Street Corporation will post 13.75 earnings per share for the current fiscal year. State Street Increases Dividend The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 13th. Stockholders of record on Thursday, October 1st will be given a $0.92 dividend. This is a boost from State Street’s previous quarterly dividend of $0.84. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.9%. State Street’s payout ratio is 32.45%.
Insider Activity In related news, EVP W. Hu sold 9,758 shares of State Street stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $184.52, for a total transaction of $1,800,546.16. Following the completion of the transaction, the executive vice president owned 49,794 shares in the company, valued at approximately $9,187,988.88. This trade represents a 16.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hanley Ronald P. O sold 14,553 shares of the business’s stock in a transaction that occurred on Tuesday, July 21st. The stock was sold at an average price of $184.17, for a total value of $2,680,226.01. Following the transaction, the chief executive officer directly owned 240,959 shares in the company, valued at approximately $44,377,419.03. This trade represents a 5.70% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.27% of the stock is owned by insiders.
Analyst Upgrades and Downgrades STT has been the topic of several research reports. Evercore set a $200.00 target price on State Street in a research note on Monday, July 20th. Zacks Research raised shares of State Street from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 21st. Weiss Ratings reiterated a “buy (b+)” rating on shares of State Street in a report on Tuesday, August 25th. JPMorgan Chase & Co. boosted their price objective on shares of State Street from $176.50 to $187.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 4th. Finally, Citigroup increased their target price on shares of State Street from $193.00 to $210.00 and gave the stock a “buy” rating in a report on Friday, July 17th. Two investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, State Street has a consensus rating of “Moderate Buy” and a consensus price target of $185.38.
View Our Latest Report on STT
About State Street (Free Report)
State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.
State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.
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On Wednesday, September 2, State Street Investment Management announced the debut of the State Street SPDR UC Investments 90/10 Endowment Strategy Index ETF (UCBG). Notably, this fund was created through a collaboration between State Street and UC Investments, the investment arm of the University of California.
Key Takeaways:
State Street launched the State Street SPDR UC Investments 90/10 Endowment Strategy Index ETF (UCBG), a new fund made in collaboration with UC Investments.
The fund debuted with a $2.5 billion initial investment from UC Investments. As a result, this makes it the largest-ever U.S.-listed ETF launch.
UCBG blends exposure to the S&P 500 with a smaller allocation to short-duration investment-grade corporate bonds.
Backed by a $2.5 billion initial investment from UC Investments, UCBG debuts as the largest U.S.-listed ETF launch in history, according to State Street.
The fund’s innovative investment approach seeks to replicate the total returns of the UC Investments 90/10 Endowment Strategy Index.
Pairing Equity and Fixed Income Exposure
Specifically, the index offers a 90%/10% equity and fixed income allocation, with 90% focused on large caps within the S&P 500 and the remaining 10% focused on investment-grade short-duration corporate bonds.
In fact, UC Investments’ top-performing Blue and Gold Endowment Pool inspired the index. Through the ETF wrapper, this institutional strategy is now available to all investors beyond the University of California community.
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“Our relationship with UC Investments spans more than two decades and has always been driven by innovation,” noted Ronald O’Hanley, chairman and chief executive officer of State Street Corporation. “With this launch, we are bringing an endowment-inspired strategy to a far broader range of investors, delivered with the low cost and transparency that make ETFs so powerful.”
A Variety of Portfolio Applications
UCBG’s investment approach may resonate with a number of different portfolios. Given its low expense ratio of six basis points, the fund can slot in as a simple and straightforward way to chase strong returns from the S&P 500 while mitigating risk with short-duration bonds.
Especially given the macroeconomic environment that we find ourselves in today, this strategy could certainly pay off. Lower-risk approaches are currently seeing broad appeal, and balancing S&P exposure with an attractive bond class may thus offer a potent path through the macroeconomic chaos.
See More: Investors Are Balancing S&P 500 Growth With Gold Hedges
“State Street continues to bring innovative ETFs to market in support of institutional and retail investors, added Todd Rosenbluth, head of research at VettaFi. “While the initial investment stems from a large university, the simple approach is likely to appeal to a broader audience.”
State Street offers an impressive ETF library, with well over 170 funds listed in the United States. One of its largest funds, the State Street Technology Select Sector SPDR ETF (XLK), holds over $120 billion in assets under management.
For more news, information, and analysis, visit the Equity ETF Content Hub.
BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE: STT) announced today that its Chief Financial Officer, John Woods, will present at the Barclays 24th Annual Global Financial Services Conference in New York, NY on Monday, September 14, 2026 at approximately 11:15 am ET.
An audio webcast of the event will be accessible on the home page of State Street’s Investor Relations website, https://investors.statestreet.com/. A recorded replay will be available on the Investor Relations website later that day, for approximately ninety days following the presentation.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $57.9 trillion in assets under custody and/or administration and $6.3 trillion* in assets under management as of June 30, 2026, State Street operates globally in more than 100 geographic markets and employs approximately 51,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
*Assets under management as of June 30, 2026 includes approximately $157 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated.
BOSTON & OAKLAND, Calif.--(BUSINESS WIRE)--State Street Investment Management today announced the launch of the State Street® SPDR® UC Investments 90/10 Endowment Strategy Index ETF (“UCBG”), a new asset allocation ETF developed in collaboration with UC Investments (“UC”), the investment arm of the University of California and the index provider for the fund. The launch is backed by a $2.5 billion investment from UC, making it the largest ever U.S.-listed ETF launch.1
The fund seeks to track the UC Investments 90/10 Endowment Strategy Index, which combines broad U.S. equity exposure with short-duration investment-grade corporate bond exposure. The index allocates 90% of its weight to the S&P 500® Index, representing large-cap U.S. equities, and 10% to the S&P U.S. Investment Grade Corporate Bond 1-3 Year Index, which includes U.S. dollar-denominated investment-grade corporate bonds with maturities between one and three years.
UC and S&P Dow Jones Indices developed the custom index, which was inspired by UC’s $7.9 billion Blue and Gold Endowment Pool, a long-term public markets strategy that since its inception seven years ago, has been the best performing product within UC’s $236 billion investment portfolio.2 The strategy reflects UC’s conviction that low-cost, liquid, diversified public markets exposure can deliver compelling long-term returns while avoiding the complexity and illiquidity of traditional endowment models.
By bringing this philosophy into an ETF wrapper, UCBG offers long-term investors access to UC’s approach, which was previously available only within the institution’s portfolio and directly to employees of its 10 campuses and six medical centers through its retirement savings program, the nation’s second-largest public defined contribution program, behind only the federal government.
“At UC Investments, we focus on building long term, cost-effective portfolios to support our hundreds of thousands of UC students, faculty, staff, and alumni for generations to come,” said Jagdeep Singh Bachher, the University of California’s Chief Investment Officer. “This record-breaking ETF launch makes our institutional investment philosophy available to a broader community of investors through the transparency, efficiency and accessibility of the ETF structure, while staying true to the principles that have guided our investment approach.”
The ETF builds on State Street’s longstanding relationship with UC Investments. Today, State Street Investment Management provides asset management services to UC Investments’ $236 billion3 portfolio across pension, endowment, and other assets, while State Street Bank and Trust Company provides custody and other investment services.
"Our relationship with UC Investments spans more than two decades and has always been driven by innovation. With this launch, we are bringing an endowment-inspired strategy to a far broader range of investors, delivered with the low cost and transparency that make ETFs so powerful," said Ronald O'Hanley, Chairman and Chief Executive Officer of State Street Corporation.
“This partnership demonstrates what’s possible when a leading asset owner and asset manager work together to turn a successful institutional investment strategy into an accessible solution for investors,” said Yie-Hsin Hung, President and Chief Executive Officer of State Street Investment Management. “It reflects our commitment to helping clients extend their investment priorities to new markets and investor communities.”
About State Street Investment Management
At State Street Investment Management, we have been helping create better outcomes for institutions, financial intermediaries, and investors for nearly half a century. Starting with our early innovations in indexing and ETFs, our rigorous approach continues to be driven by market-tested expertise and a relentless commitment to those we serve. With over $6 trillion in assets managed*, clients in 60 countries, and a global network of strategic partners, we use our scale to deliver a comprehensive and cost-effective suite of investment solutions that help investors get wherever they want to go.
*This figure is presented as of June 30, 2026 and includes ETF AUM of $2,203.98 billion USD of which approximately $156.81 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated. Please note all AUM is unaudited.
About UC Investments
UC Investments manages the University of California’s retirement, endowment, working capital, and cash assets. Serving students, alumni, faculty, and staff, UC Investments provides fiduciary oversight and long-term stewardship of the university’s $236 billion investment portfolio. Visit here for more.
Important Risk Information
State Street Global Advisors (SSGA) is now State Street Investment Management. Please click here for more information.
Investing involves risk including the risk of loss of principal.
The Index is not intended to replicate the exact asset allocation of any endowment pool of UC Investments and, therefore, the Fund’s returns may differ from the returns of UC Investments' endowment pools.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.
While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.
Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.
Funds managed with an index investment strategy attempt to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the index or of the actual securities comprising the index. This differs from an actively managed fund, which typically seeks to outperform a benchmark index. As a result, the performance of a fund managed with an index investment strategy may be less favorable than if such fund employed an active strategy. While a fund managed with an index investment strategy seeks to track the performance of an index as closely as possible, the fund’s return may not match or achieve a high degree of correlation with the return of the index due to operating expenses, transaction costs, and cash flows.
Returns on investments in stocks of large companies could trail the returns on investments in stocks of smaller and mid-sized companies.
Debt Securities Risk: The value of the debt securities may increase or decrease as a result of the following: market fluctuations, changes in interest rates, inability of issuers to repay principal and interest or illiquidity in the debt securities markets.
Income Risk: The Fund's income may decline due to falling interest rates or other factors. Issuers of securities held by the Fund may call or redeem the securities during periods of falling interest rates, and the Fund would likely be required to reinvest in securities paying lower interest rates. If an obligation held by the Fund is prepaid, the Fund may have to reinvest the prepayment in other obligations paying income at lower rates. A reduction in the income earned by the Fund may limit the Fund's ability to achieve its objective.
Market Risk: The Fund’s investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile, and prices of investments can change substantially due to various factors, including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, trade policy changes or disputes, the threat or actual imposition of tariffs, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.
Intellectual Property Information: The S&P 500® Index is a product of S&P Dow Jones Indices LLC or its affiliates (“S&P DJI”) and have been licensed for use by State Street Global Advisors. S&P®, SPDR®, S&P 500®, US 500 and the 500 are trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by State Street Global Advisors. The fund is not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of these indices.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs.
Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257 or visit statestreet.com/im. Read it carefully.
Not FDIC insured. No bank guarantee. May lose value.
On September 02, 2026, we conducted a DCF analysis for State Street Corp STT, a company that has shown significant price performance over the past year. The stock has appreciated by 67.5% over the last 12 months and is currently trading at $187.79. However, our valuation models indicate a consensus that the stock is overvalued.
DCF Earnings-based intrinsic value of $156.74 vs current price of $187.79 (margin of safety: -19.8%) DCF FCF-based intrinsic value of $85.59 (significantly overvalued with -119.4% margin of safety) GF Score™ of 74/100 suggests moderate reliability of the DCF inputs What Is STT Worth? DCF Earnings-Based Model In our DCF earnings-based model, we utilized a two-stage approach to estimate the intrinsic value of State Street Corp. The first stage accounts for a growth phase of 10 years, where we expect the EPS to grow at a rate of 6.6% annually, followed by a terminal phase with a growth rate of 4% for the subsequent 10 years.
Parameter Value Current EPS (TTM, excl. non-recurring) $12.24 10-Year Growth Rate 6.6% 10-Year Treasury Rate 4.81% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% Here’s a summary of the calculations:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 6.6%, discounted at 11% $98.65 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $58.09 Intrinsic Value Growth + Terminal $156.74 With the current price at $187.79, the intrinsic value of $156.74 suggests that the stock is modestly overvalued, with a margin of safety of -19.8%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices are more closely correlated with earnings than with free cash flow. For a detailed analysis, visit our STT DCF Calculator.
What Does the Free Cash Flow DCF Say? In addition to the earnings-based model, we also evaluated State Street Corp using a free cash flow (FCF) DCF model. The FCF-based intrinsic value is calculated at $85.59, which is significantly lower than the earnings-based valuation. This indicates a greater degree of overvaluation with a margin of safety of -119.4%. This divergence between the two models reinforces the notion that STT is overvalued.
How Does GF Value™ Compare to the DCF Models? According to our GF Value™, State Street Corp has a value of $125.28. This proprietary measure is derived from historical trading multiples, past business growth, and future performance estimates. All three valuation models—DCF earnings, DCF FCF, and GF Value™—align in suggesting that the stock is overvalued. For more insights, check the GF Value™ page.
What Does STT's GF Score™ Tell Us? The GF Score™ evaluates a company's financial strength, profitability, growth potential, and valuation metrics. State Street Corp has a GF Score™ of 74/100, indicating a relatively strong position in these areas. However, with a predictability rank of 2 out of 5 stars, the reliability of the DCF estimates is lower. This means that investors should exercise caution when interpreting these valuations.
Metric Rating GF Score™ 74/100 Financial Strength 3/10 Profitability 6/10 Growth 9/10 Valuation 3/10 Momentum 6/10 For more information on STT, visit the STT stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as STT's 2 out of 5 stars, yield less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future economic conditions.
What This Means for Investors In summary, all three valuation models—DCF earnings, DCF FCF, and GF Value™—concur that State Street Corp is overvalued at its current price of $187.79. The guru ownership signal indicates that 15 gurus currently hold the stock, with 3 adding and 11 trimming their positions in recent quarters. Additionally, insider activity shows net selling over the past 12 months, which may suggest caution. Given these factors, investors should carefully consider their positions in STT. For further analysis, check out our STT DCF Calculator.
Frequently Asked Questions What is STT's intrinsic value based on DCF?
earnings-based $156.74, FCF-based $85.59
Is STT overvalued or undervalued?
Based on the consensus of DCF and GF Value™, STT is overvalued.
How reliable is the DCF model for STT?
The DCF model's reliability is limited due to a predictability rank of 2 out of 5 stars.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of State Street Corporation (NYSE:STT – Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 6,729 shares of the asset manager’s stock, valued at approximately $1,141,000.
A number of other institutional investors also recently bought and sold shares of the company. Brighton Jones LLC purchased a new stake in shares of State Street during the 4th quarter valued at about $296,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of State Street by 2.9% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,223 shares of the asset manager’s stock worth $2,885,000 after buying an additional 918 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in shares of State Street by 105.2% in the first quarter. NewEdge Advisors LLC now owns 10,193 shares of the asset manager’s stock worth $913,000 after buying an additional 5,226 shares during the last quarter. Empowered Funds LLC grew its position in State Street by 220.1% during the first quarter. Empowered Funds LLC now owns 23,263 shares of the asset manager’s stock valued at $2,065,000 after buying an additional 15,996 shares during the period. Finally, Woodline Partners LP grew its position in State Street by 38.4% during the first quarter. Woodline Partners LP now owns 24,372 shares of the asset manager’s stock valued at $2,182,000 after buying an additional 6,767 shares during the period. Institutional investors own 87.44% of the company’s stock.
State Street Price Performance Shares of NYSE:STT opened at $193.42 on Monday. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.59 and a quick ratio of 0.59. State Street Corporation has a 1-year low of $104.64 and a 1-year high of $195.93. The company has a market capitalization of $53.13 billion, a P/E ratio of 17.06, a P/E/G ratio of 0.80 and a beta of 1.41. The firm’s 50 day simple moving average is $182.46 and its two-hundred day simple moving average is $156.10.
State Street (NYSE:STT – Get Free Report) last announced its quarterly earnings data on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.34 by $0.31. The firm had revenue of $4.05 billion during the quarter, compared to analysts’ expectations of $3.88 billion. State Street had a net margin of 15.02% and a return on equity of 15.26%. The company’s revenue for the quarter was up 23.3% compared to the same quarter last year. During the same period in the prior year, the company posted $2.04 earnings per share. Research analysts expect that State Street Corporation will post 13.75 EPS for the current fiscal year. State Street Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 13th. Investors of record on Thursday, October 1st will be issued a $0.92 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $3.68 annualized dividend and a yield of 1.9%. This is an increase from State Street’s previous quarterly dividend of $0.84. State Street’s payout ratio is currently 29.63%.
Insiders Place Their Bets In other State Street news, EVP W. Bradford Hu sold 9,758 shares of the stock in a transaction on Friday, July 24th. The stock was sold at an average price of $184.52, for a total value of $1,800,546.16. Following the completion of the sale, the executive vice president owned 49,794 shares in the company, valued at approximately $9,187,988.88. This represents a 16.39% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hanley Ronald P. O sold 14,553 shares of the firm’s stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $184.17, for a total value of $2,680,226.01. Following the sale, the chief executive officer directly owned 240,959 shares in the company, valued at approximately $44,377,419.03. This represents a 5.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 25,811 shares of company stock worth $4,723,982. Corporate insiders own 0.27% of the company’s stock.
Analyst Ratings Changes STT has been the topic of several analyst reports. Citigroup lifted their price target on shares of State Street from $193.00 to $210.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Zacks Research upgraded State Street from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 21st. JPMorgan Chase & Co. raised their target price on State Street from $176.50 to $187.00 and gave the stock a “neutral” rating in a report on Tuesday, August 4th. Royal Bank Of Canada lifted their target price on State Street from $155.00 to $196.00 and gave the company a “sector perform” rating in a research report on Friday, July 17th. Finally, Weiss Ratings reissued a “buy (b+)” rating on shares of State Street in a report on Tuesday, August 25th. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $185.38.
Check Out Our Latest Analysis on State Street
State Street Profile (Free Report)
State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.
State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.
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On August 26, 2026, we conducted a DCF analysis for State Street Corp STT, which has shown impressive price performance over the past year, with a year-to-date increase of 52.3% and a one-year increase of 72.2%. However, our valuation models indicate that the stock is currently overvalued.
DCF Earnings-based intrinsic value of $156.74 compared to current price of $192.95 (margin of safety: -23.1%) DCF Free Cash Flow-based intrinsic value of $85.59 (significantly overvalued with -125.4% margin of safety) GF Score™ of 74/100 indicates moderate reliability of the DCF inputs What Is STT Worth? DCF Earnings-Based Model In our DCF earnings-based model, we utilized a two-stage approach to estimate the intrinsic value of State Street Corp. The first stage reflects a growth phase over the next ten years, while the second stage accounts for a terminal growth phase. Below are the key assumptions used in our model:
Parameter Value Current EPS (TTM, excl. non-recurring) $12.24 10-Year Growth Rate 6.6% 10-Year Treasury Rate 4.64% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% Here is a summary of our calculation:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 6.6%, discounted at 11% $98.65 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $58.09 Intrinsic Value Growth + Terminal $156.74 With the current price at $192.95, the intrinsic value of $156.74 indicates that the stock is modestly overvalued, with a margin of safety of -23.1%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research suggests that stock prices correlate more closely with earnings than with free cash flow. For further details, you can visit the STT DCF Calculator.
What Does the Free Cash Flow DCF Say? The Free Cash Flow (FCF)-based intrinsic value for State Street Corp is calculated at $85.59. This figure significantly contrasts with the earnings-based intrinsic value, indicating a more pronounced overvaluation. The margin of safety here is a staggering -125.4%, reinforcing the view that the stock is significantly overvalued based on FCF metrics.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for State Street Corp stands at $124.96, providing yet another perspective on the stock's valuation. GF Value™ is derived from a combination of historical trading multiples, past business growth, and estimates of future performance. All three valuation models—DCF earnings, DCF FCF, and GF Value™—concur that the stock is overvalued at its current price level. For more insights, check the GF Value™ page.
What Does STT's GF Score™ Tell Us? The GF Score™ measures various aspects of a company's financial health, including its valuation, profitability, and growth potential. State Street Corp has a GF Score™ of 74 out of 100, indicating a decent overall performance, although its predictability rank is low at 2 out of 5 stars. This lower predictability suggests that the DCF model may be less reliable for this stock.
Metric Rating GF Score™ 74/100 Financial Strength 3/10 Profitability 6/10 Growth 9/10 Valuation 3/10 Momentum 6/10 For more details, visit the STT stock page.
Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as State Street Corp, often yield less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect actual future performance.
What This Means for Investors In summary, all three valuation models—DCF earnings, DCF FCF, and GF Value™—indicate that State Street Corp is overvalued at its current price. The consensus from these models suggests caution for potential investors. Notably, the guru ownership signal shows that 16 gurus currently hold the stock, with 3 adding and 12 trimming their positions in recent quarters, indicating mixed sentiment. Additionally, insiders have been net selling over the past 12 months. This combination of factors reinforces the notion that investors should approach this stock with caution. For further analysis, feel free to explore the STT DCF Calculator.
Frequently Asked Questions What is STT's intrinsic value based on DCF?
Answer: earnings-based $156.74, FCF-based $85.59
Is STT overvalued or undervalued?
Answer: STT is overvalued based on both DCF and GF Value™ consensus.
How reliable is the DCF model for STT?
Answer: The DCF model's reliability is limited due to a predictability rank of 2 out of 5.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
(Kitco News) - Gold’s recent correction appears to have done little to damage its long-term investment case, and with concerns over unsustainable sovereign debt returning to the forefront of global financial markets, one strategist sees $5,000 an ounce by year-end firmly back in play.
However, Aakash Doshi, Head of Gold Strategy at State Street Investment Management, said in an interview with Kitco News that investors should be thinking beyond gold’s next milestone. In the current global fiscal environment, he sees $10,000 gold as ultimately a question of timing rather than possibility.
Doshi’s bullish outlook comes as gold prices have rallied roughly 15% in August, their best monthly performance since January 1999. Spot gold last traded at $4,621.30 an ounce, down 0.79% on the day.
He explained that the “debasement trade” that drove gold to record highs earlier this year never disappeared. Instead, it went dormant as rising interest rates and a stronger U.S. dollar created significant headwinds for the precious metal. (Kitco Global Index shows how much of today's gold move is the dollar versus the gold market itself.)
“At State Street, we never thought it was dead; we just thought it was on pause,” he said. “And now I think it’s alive again.”
Doshi said the renewed momentum comes as several important macroeconomic developments have shifted in gold’s favor. The Federal Reserve has yet to deliver on the market’s hawkish expectations, U.S. labor market data has softened and the Treasury Department’s decision to increase long-term bond buybacks has once again focused attention on America’s deteriorating fiscal position.
He added that gold’s ability to hold $4,000 through its correction and subsequently rally back toward $4,600 to $4,700 has strengthened his conviction that the broader bull market remains intact.
Doshi said State Street’s base-case range is now $4,750 to $5,500 an ounce by early next winter. Within that outlook, he sees the low-$5,000 area — roughly $5,000 to $5,250 — as a reasonable target, with the potential for the move to happen sooner than previously expected.
A dovish shift from the Federal Reserve or another macroeconomic shock could potentially bring $5,000 into play as soon as the fourth quarter, he said.
“We started to see inflows rebound aggressively from Western ETF investors,” Doshi said. “I think there’s plenty of firepower here to go.”
Although monetary policy remains an important tactical driver for gold, Doshi said the much bigger issue facing global markets is the sustainability of sovereign debt.
U.S. government debt recently surpassed $40 trillion, but Doshi said investors should not view the problem solely through an American lens. Fiscal deterioration and rising long-term borrowing costs have become global issues, affecting the United Kingdom, Europe and Japan as governments continue running substantial deficits even outside recessionary periods.
He added that this environment will continue to create broad support for gold as a global monetary asset.
“There is just a concern about the sheer level of debt, the amount of fiscal spending that’s happening during non-recessionary periods,” he said.
This changing fiscal landscape is also forcing investors to rethink one of gold’s most important traditional relationships.
Historically, higher bond yields — particularly higher real yields — have been negative for gold because they increase the opportunity cost of holding a non-yielding asset. However, Doshi said investors now have to ask why yields are rising.
He noted that if yields are moving higher because economic growth is accelerating and investors are increasingly optimistic about corporate earnings, that environment could create legitimate competition for gold. But if yields are rising because investors demand a larger term premium to compensate for inflation, excessive government borrowing and deteriorating fiscal credibility, the implications are considerably different.
In that environment, he said gold becomes less about opportunity cost and more about protecting purchasing power.
“It becomes more, ‘I’m owning gold because of debasement and purchasing power risk and debt monetization risk,’” Doshi said, adding that recent market action suggests this argument is winning.
Doshi said this dynamic helps explain why gold can remain resilient even as long-term yields stay elevated. A modest decline in real yields would provide a traditional tailwind for the precious metal; however, even sharply higher yields could support gold if the move reflects deteriorating confidence in sovereign debt and is accompanied by a weaker U.S. dollar, he said.
“I think right now it’s a little bit of a confidence game,” he said. “Gold has no creditor, it is a scarce natural resource, and it has history behind it.”
It is against this backdrop that Doshi sees an eventual path to $10,000 gold.
He cautioned that such a move would not happen in a straight line and would depend on how broader financial markets respond to growing fiscal pressures. A recession, for example, could simultaneously boost gold and restore demand for government bonds, temporarily relieving some of the pressure that has fueled the debasement trade.
Nevertheless, Doshi said the long-term direction remains clear.
“I do think $10,000 is a question of when, not if,” he said.
Importantly, gold would not require an extreme allocation shift among global investors to reach that level.
Doshi noted that gold funds still represent less than 1% of global exchange-traded fund and mutual fund assets. If gold were to eventually become a 3% strategic allocation, roughly tripling its current share, he said that shift alone could generate enough investment demand to drive prices toward $10,000 an ounce.
Meanwhile, he said that there are already indications that gold’s investor base is broadening.
Doshi said Chinese investors were important buyers during the recent correction and helped establish strong support around $4,000 even as Western investment participation remained relatively limited. With gold subsequently rebounding toward $4,700, he said Western investors could be more willing to buy the next technical correction after seeing the strength of underlying demand.
At the same time, physical demand remains resilient. Emerging-market central banks continued to buy aggressively during the second quarter, while Chinese retail investors accumulated record amounts of gold heading into the summer.
For Doshi, those flows highlight an important distinction between the tactical forces driving gold from month to month and the structural forces supporting its longer-term role as a global monetary asset.
Geopolitical fragmentation, rising military spending, growing fiscal deficits and concerns over sovereign debt sustainability have not disappeared. In some cases, he said, geopolitical turmoil has only intensified those pressures.
“The structural was always there,” Doshi said. “Currently, the structural has become combined with the more tactical.”
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Allworth Financial LP purchased a new stake in shares of State Street Corporation (NYSE:STT – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 3,426 shares of the asset manager’s stock, valued at approximately $581,000.
Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in State Street in the 2nd quarter valued at about $4,139,389,000. Regents of The University of California lifted its position in shares of State Street by 211.2% during the 4th quarter. Regents of The University of California now owns 8,706,195 shares of the asset manager’s stock worth $1,123,186,000 after buying an additional 5,908,370 shares in the last quarter. Norges Bank bought a new position in shares of State Street during the 4th quarter worth approximately $303,483,000. Bank of New York Mellon Corp purchased a new position in shares of State Street in the 2nd quarter worth approximately $301,393,000. Finally, Pinebridge Investments LLC bought a new position in State Street in the 4th quarter valued at $178,705,000. 87.44% of the stock is currently owned by hedge funds and other institutional investors.
State Street Price Performance STT opened at $187.22 on Monday. The company has a market capitalization of $51.43 billion, a price-to-earnings ratio of 16.51, a PEG ratio of 0.77 and a beta of 1.41. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 1.04. The firm has a 50-day moving average price of $180.11 and a 200-day moving average price of $153.94. State Street Corporation has a twelve month low of $104.64 and a twelve month high of $195.18.
State Street (NYSE:STT – Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.34 by $0.31. The company had revenue of $4.05 billion for the quarter, compared to analyst estimates of $3.88 billion. State Street had a net margin of 15.02% and a return on equity of 15.26%. The company’s quarterly revenue was up 23.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.04 earnings per share. Equities analysts expect that State Street Corporation will post 13.75 EPS for the current year. State Street Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 13th. Investors of record on Thursday, October 1st will be paid a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Thursday, October 1st. This is a positive change from State Street’s previous quarterly dividend of $0.84. State Street’s dividend payout ratio is presently 29.63%.
Insider Buying and Selling In other news, CEO Hanley Ronald P. O sold 14,553 shares of the company’s stock in a transaction dated Tuesday, July 21st. The stock was sold at an average price of $184.17, for a total transaction of $2,680,226.01. Following the sale, the chief executive officer directly owned 240,959 shares in the company, valued at $44,377,419.03. This represents a 5.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael L. Richards sold 1,500 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $162.14, for a total transaction of $243,210.00. Following the transaction, the executive vice president directly owned 41,827 shares of the company’s stock, valued at approximately $6,781,829.78. This represents a 3.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 49,576 shares of company stock valued at $8,415,875. Corporate insiders own 0.27% of the company’s stock.
Analysts Set New Price Targets A number of equities analysts recently weighed in on the stock. Wells Fargo & Company boosted their price target on shares of State Street from $196.00 to $215.00 and gave the stock an “overweight” rating in a report on Friday, July 17th. JPMorgan Chase & Co. raised their price objective on shares of State Street from $176.50 to $187.00 and gave the stock a “neutral” rating in a report on Tuesday, August 4th. Weiss Ratings raised shares of State Street from a “buy (b)” rating to a “buy (b+)” rating in a report on Thursday, May 28th. Citigroup upped their price objective on State Street from $193.00 to $210.00 and gave the company a “buy” rating in a research note on Friday, July 17th. Finally, UBS Group set a $176.00 price objective on State Street in a report on Friday, June 26th. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $185.38.
Check Out Our Latest Analysis on STT
About State Street (Free Report)
State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.
State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.
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BOSTON--(BUSINESS WIRE)--State Street Investment Management today announced plans to close and liquidate the following ETFs (the “Liquidating ETFs”) based on a review of its ETF offerings. ETF Name Ticker State Street® SPDR® S&P Kensho Intelligent Structures ETF SIMS State Street® SPDR® S&P Kensho Smart Mobility ETF HAIL State Street® Nuveen Municipal Bond ETF MBND The final day for creations and redemptions in each Liquidating ETF will be February 17, 2027. Trading of all shares will b.
For Immediate ReleaseChicago, IL – August 20, 2026 – Today, Zacks Equity U.S. Bancorp (USB - Free Report) , State Street Corp. (STT - Free Report) and Northern Trust Corp. (NTRS - Free Report)
The Zacks Major Regional Banks’ asset quality is expected to remain subdued in the near term due to a challenging operating backdrop. While the Federal Reserve is likely to keep rates unchanged in the near term, industry players should continue benefiting from relatively lower rates. Combined with decent economic growth and improving loan demand, this is expected to support expansion in net interest income and margins.
Business restructuring and expansion efforts and ongoing digitization should provide additional support. Major regional banks like U.S. Bancorp, State Street Corp. and Northern Trust Corp. are well-positioned to gain.
About the IndustryThe Zacks Major Regional Banks industry includes the nation’s largest banks in terms of assets, with most operating globally. The financial performance of these banks largely depends on the nation’s economic health. As banks are involved in numerous complex financial activities, they are required to comply with stringent regulations set by the Federal Reserve and other regulatory agencies.
Apart from traditional banking services, which are the source of net interest income (NII), major regional banks provide a wide array of other financial services and products to retail, corporate and institutional clients, both domestic and global. These include credit and debit cards, mortgage banking, wealth management and investment banking, among others. A significant revenue source for these banks is fees and commissions earned from these services.
4 Key Themes to Influence the Major Regional Banks IndustryNo Change in Interest Rates:The Fed has paused interest rate cuts and turned hawkish because of rising inflation numbers amid the ongoing geopolitical conflict. Market participants expect at least one rate hike before 2026 ends, with no chance of further cuts till mid-2027. As such, major regional banks are likely to keep benefiting from relatively lower rates (compared with historically higher rates in 2022 and 2023) as deposit and funding costs fall/stabilize and the lending backdrop gradually improves. As such, industry players’ NII and margins are expected to keep expanding.
Rise in Loan Demand: The central bank’s aggressive monetary tightening in 2021 and 2022 weighed on loan demand amid concerns over a potential economic downturn or recession. However, the trend has reversed since then. According to the Fed’s Summary of Economic Projections released in June 2026, U.S. economic growth is expected to remain decent. This, coupled with lower borrowing costs and greater clarity on several macroeconomic factors, is likely to support loan demand. Major regional banks are expected to see a solid increase in demand for both wholesale and consumer loans.
Restructuring Initiatives: Major regional banks are taking steps to diversify their revenue streams and reduce their reliance on spread income. Business restructuring remains a key priority, enabling banks to support technological advancement, expand their domestic and international operations, and enhance profitability.
Industry participants are investing heavily in artificial intelligence and other digital platforms, while also pursuing partnerships with or acquisitions of technology and service providers. Several major regional banks are aggressively expanding their footprints across the United States and international markets. At the same time, many are reassessing their business models to streamline operations, improve efficiency and exit less profitable businesses.
Asset Quality: Mounting worries about the economy and uncertainty around trade policies pursued by the Trump administration have added to inflationary pressure. Renewed Middle East tensions and oil-shock risks are further lifting costs, squeezing household and business budgets and, in turn, weakening borrowers’ repayment capacity. In response, major regional banks are less likely to lower loan-loss reserves to cushion against potential defaults and payment delays. While disciplined underwriting and generally resilient borrowers have helped industry players keep asset quality under control, several key credit indicators have drifted above pre-pandemic levels.
Zacks Industry Rank Indicates OptimismThe Zacks Major Regional Banks industry is a nine-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #55, which places it in the top 22% of more than 240 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates outperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outpace the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of an encouraging earnings outlook for the constituent companies in aggregate. The aggregate estimate revision trend reflects an improving situation. Over the past year, the industry’s earnings estimates for 2026 have been revised 9% upward, and those for 2027 are up 7.9%.
Before we present a handful of major regional bank stocks to bet on, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry's Stock Market Performance Is SolidThe Zacks Major Regional Banks industry outperformed the S&P 500 composite and the sector over the past two years.
Stocks in this industry have collectively jumped 64.6% over the past two years. In the same time frame, the Zacks S&P 500 composite has surged 42.8%, and the Zacks Finance sector rallied 35.3%.
Industry's Valuation is AttractiveOne might get a good sense of the industry’s relative valuation by looking at its price-to-tangible book ratio (P/TBV), which is commonly used for valuing banks because of large variations in their earnings from one quarter to the next.
The industry currently has a trailing 12-month P/TBV of 3.08X. This compares with the highest level of 3.21X, the lowest of 1.85X and the median of 2.41X over the past five years. The industry is trading at a huge discount compared with the market at large, as the trailing 12-month P/TBV for the S&P 500 composite is 10.18X.
As finance stocks typically have a lower P/TBV ratio, comparing major regional banks with the S&P 500 may not make sense to many investors. However, comparing the group’s P/TBV ratio with that of the broader sector ensures that the group is trading at a solid discount. The Zacks Finance sector’s trailing 12-month P/TBV came in at 6.05X. This is above the Zacks Major Regional Banks industry’s ratio.
3 Major Regional Banks to ConsiderU.S. Bancorp: Headquartered in Minneapolis, MN, U.S. Bancorp provides banking and investment services, mainly operating in the Midwest and West regions of the United States. The company has expanded through several strategic acquisitions over the years, which have strengthened its market position, digital capabilities and diversified revenue streams.
In June 2026, the company completed the acquisition of BTIG, expanding its capital markets platform with institutional equity sales and trading, equity capital markets, electronic trading and M&A advisory capabilities. This, along with several other expansion efforts, will continue to strengthen USB’s fee-based businesses.
The company’s NII has been rising over the past few years. Going forward, less deposit migration, relatively lower rates and stabilizing funding costs will continue to support NII and NIM expansion. U.S. Bancorp has experienced steady growth in total loans and deposits during the past few years as it continues to expand and deepen relationships with current customers as well as acquire new customers and market share.
The company’s capital distributions seem impressive. Following the successful completion of the 2026 stress test, management plans to increase the quarterly dividend by 4% to 54 cents per share in the third quarter of 2026, subject to board approval. The company also continues to repurchase shares under its $5 billion buyback program. Given its consistent earnings and decent liquidity position, the company’s capital deployment activities seem to be sustainable.
USB, which carries a Zacks Rank #2 (Buy), has a market cap of $100.9 billion. The Zacks Consensus Estimate for earnings indicates growth of 13% and 10.4% for 2026 and 2027, respectively. The stock has rallied 21.6% over the past three months.
State Street:Headquartered in Boston, MA, State Street provides a range of products and services for institutional investors worldwide through its subsidiaries. As of June 30, 2026, the company reported record assets under custody and administration (AUC/A) of $57.9 trillion and assets under management (AUM) of $6.28 trillion.
State Street's fee-based model continues to benefit from its scale in custody, asset management and markets, supported by strong flows, product expansion and broader distribution. While the company’s total fee revenues declined in 2022 and 2023, the metric saw a four-year (2021-2025) CAGR of 2.3%, mainly driven by higher client activity and significant market volatility. AUC/A and AUM recorded a CAGR of 5.3% and 8.2%, respectively, in the same time frame.
At the end of the first quarter, STT reported $2.93 trillion of AUC/A to be installed and $335 million of servicing fee revenues to be installed. This provides better forward visibility beyond near-term market swings, while continued Alpha mandate wins reinforce demand for integrated front-to-back solutions. State Street remains well-placed for fundamental business activities, given its global exposure and a broad array of innovative products and services.
This Zacks Rank #2 company has been using partnerships, minority stakes and strategic bolt-on acquisitions to expand growth platforms across investment, distribution and technology. Despite lower rates, State Street’s NII and net interest margin are expected to witness decent improvements in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
STT has a market cap of $48.7 billion. The Zacks Consensus Estimate for earnings indicates growth of 30.5% for 2026 and 11.2% for 2027. Over the past three months, the stock has gained 27.2%.
Northern Trust: With total assets worth $179.3 billion as of June 30, 2026, Northern Trust is a leading provider of wealth management, asset servicing, asset management and banking solutions to corporations, institutions, families and individuals.
Organic growth is the company’s key strength. Its revenues witnessed a CAGR of 5.7% over the last five years (2020-2025), driven by rising non-interest income and NII. As the client base expands, the company expects to see a steady rise in loan activity, particularly as its wealth management services attract more clients. This ongoing focus on wealth management is expected to drive growth in the lending portfolio.
Following the launch of Family Office Solutions for ultra-high-net-worth clients, NTRS’ investment management division, Northern Trust Asset Management, partnered with Envestnet in January to expand access to its tax-managed direct indexing solutions, enhancing distribution reach for this client segment. These initiatives, along with continued asset servicing wins and low double-digit wealth management trust fee growth, are expected to support fee income and strengthen organic growth momentum.
NTRS is undertaking expense management efforts to tackle expense growth and support operating leverage. It is focused on disciplined headcount management, vendor consolidation, rationalization of its real estate footprint and process automation. Through such efforts, it will likely improve productivity and meet the financial targets.
NTRS has a market cap of $34.9 billion. The Zacks Consensus Estimate for earnings indicates 28.6% and 9.1% growth in 2026 and 2027, respectively. The company, which carries a Zacks Rank of 2, witnessed a 15.6% rise in its stock price over the past three months.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release
Schwab International Equity ETF (SCHF +0.57%) and State Street SPDR Portfolio Developed World ex-US ETF (SPDW +0.62%) provide nearly identical low-cost exposure to non-U.S. developed markets, differing primarily in index provider and portfolio depth.
These exchange-traded funds serve as core international building blocks for investors seeking geographic diversification. By excluding U.S. stocks, they allow for precise control over domestic versus international allocations. While their portfolios overlap significantly, their underlying benchmarks and total number of securities provide slight variations in market coverage that may appeal to different types of investors.
Snapshot (cost & size)MetricSPDWSCHFIssuerSPDRSchwabShare price$52.13 (as of 2026-08-13)$28.49 (as of 2026-08-13)Expense ratio0.03%0.03%1-yr return (as of 2026-08-13)29.0%29.5%Dividend yield2.9%3.0%Beta0.840.82AUM$41.8B$69.4BBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Both international funds are among the most affordable options on the market, each carrying a low 0.03% expense ratio. The dividend yield difference is minimal, though the Schwab fund has historically offered a slightly higher payout. These low costs ensure that a high percentage of the underlying international dividends and capital appreciation reach the investor.
Performance & risk comparisonMetricSPDWSCHFMax drawdown (5 yr)(30.2%)(29.1%)Growth of $1,000 over 5 years (total return)$1,620$1,644What's insideThe Schwab fund tracks the FTSE Developed ex US Index, focusing on large- and mid-cap companies. Its sector exposure includes Financial Services 26%, Industrials 18%, and Technology 15%. Its largest positions include Samsung Electronics (KOSE:A005930) at 2.86%, ASML Holding (ASML -2.84%) at 2.35%, and SK Hynix (SKHY +0.35%) at 2.04%. The fund holds 1,490 securities. It was launched in 2009. Schwab International Equity ETF has paid $0.84 per share over the trailing 12 months, which on its recent ~$28.5 share price works out to a 3% yield.
The State Street fund tracks the S&P Developed Ex-U.S. BMI Index, providing broader reach with 2,436 holdings across similar markets. Its largest positions include Samsung Electronics at 2.48%, ASML Holding at 2.04%, and SK Hynix at 1.68%. Its sector weights are nearly identical, led by Financial Services 25%, Industrials 18%, and Technology 15%. It was launched in 2007. State Street SPDR Portfolio Developed World ex-US ETF has paid $1.52 per share over the trailing 12 months, which on its recent ~$52.1 share price works out to a 2.9% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buyInternational ETFs are becoming increasingly popular as U.S. investors look to diversify beyond U.S. large cap stocks.
International stocks have outperformed U.S. stocks in recent years and are expected to continue to beat U.S. large caps in the years ahead. An analysis by Vanguard released in July says that over the next 10 years, international equities will likely post higher returns than U.S. stocks.
A key difference between the two is that the State Street fund is more diversified, investing in the broad universe of international stocks, including small caps. The Schwab ETF sticks primarily to large and mid-cap international stocks, omitting small caps.
Returns have been fairly similar, both over the past 12 months and across longer term time periods. Going forward, if Iʻm investing in one international ETF, Iʻm favoring the more diversified State Street fund. International small-caps have historically beaten international large caps over the long-term and are currently trading at extremely discounted levels.
So, over time, having that access to international small caps should help the performance of the State Street ETF.
The Zacks Major Regional Banks’ asset quality is expected to remain subdued in the near term due to a challenging operating backdrop. While the Federal Reserve is likely to keep rates unchanged in the near term, industry players should continue benefiting from relatively lower rates. Combined with decent economic growth and improving loan demand, this is expected to support expansion in net interest income and margins.
Business restructuring and expansion efforts and ongoing digitization should provide additional support. Major regional banks like U.S. Bancorp (USB - Free Report) , State Street Corporation (STT - Free Report) and Northern Trust Corporation (NTRS - Free Report) are well-positioned to gain.
About the Industry The Zacks Major Regional Banks industry includes the nation’s largest banks in terms of assets, with most operating globally. The financial performance of these banks largely depends on the nation’s economic health. As banks are involved in numerous complex financial activities, they are required to comply with stringent regulations set by the Federal Reserve and other regulatory agencies. Apart from traditional banking services, which are the source of net interest income (NII), major regional banks provide a wide array of other financial services and products to retail, corporate and institutional clients, both domestic and global. These include credit and debit cards, mortgage banking, wealth management and investment banking, among others. A significant revenue source for these banks is fees and commissions earned from these services.
4 Key Themes to Influence the Major Regional Banks Industry No Change in Interest Rates: The Fed has paused interest rate cuts and turned hawkish because of rising inflation numbers amid the ongoing geopolitical conflict. Market participants expect at least one rate hike before 2026 ends, with no chance of further cuts till mid-2027. As such, major regional banks are likely to keep benefiting from relatively lower rates (compared with historically higher rates in 2022 and 2023) as deposit and funding costs fall/stabilize and the lending backdrop gradually improves. As such, industry players’ NII and margins are expected to keep expanding.
Rise in Loan Demand: The central bank’s aggressive monetary tightening in 2021 and 2022 weighed on loan demand amid concerns over a potential economic downturn or recession. However, the trend has reversed since then. According to the Fed’s Summary of Economic Projections released in June 2026, U.S. economic growth is expected to remain decent. This, coupled with lower borrowing costs and greater clarity on several macroeconomic factors, is likely to support loan demand. Major regional banks are expected to see a solid increase in demand for both wholesale and consumer loans.
Restructuring Initiatives: Major regional banks are taking steps to diversify their revenue streams and reduce their reliance on spread income. Business restructuring remains a key priority, enabling banks to support technological advancement, expand their domestic and international operations, and enhance profitability. Industry participants are investing heavily in artificial intelligence and other digital platforms, while also pursuing partnerships with or acquisitions of technology and service providers. Several major regional banks are aggressively expanding their footprints across the United States and international markets. At the same time, many are reassessing their business models to streamline operations, improve efficiency and exit less profitable businesses.
Asset Quality: Mounting worries about the economy and uncertainty around trade policies pursued by the Trump administration have added to inflationary pressure. Renewed Middle East tensions and oil-shock risks are further lifting costs, squeezing household and business budgets and, in turn, weakening borrowers’ repayment capacity. In response, major regional banks are less likely to lower loan-loss reserves to cushion against potential defaults and payment delays. While disciplined underwriting and generally resilient borrowers have helped industry players keep asset quality under control, several key credit indicators have drifted above pre-pandemic levels.
Zacks Industry Rank Indicates Optimism The Zacks Major Regional Banks industry is a nine-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #55, which places it in the top 22% of more than 240 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates outperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outpace the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of an encouraging earnings outlook for the constituent companies in aggregate. The aggregate estimate revision trend reflects an improving situation. Over the past year, the industry’s earnings estimates for 2026 have been revised 9% upward, and those for 2027 are up 7.9%.
Before we present a handful of major regional bank stocks to bet on, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry's Stock Market Performance Is Solid The Zacks Major Regional Banks industry outperformed the S&P 500 composite and the sector over the past two years.
Stocks in this industry have collectively jumped 64.6% over the past two years. In the same time frame, the Zacks S&P 500 composite has surged 42.8%, and the Zacks Finance sector rallied 35.3%.
Two-Year Price Performance
Industry's Valuation is Attractive One might get a good sense of the industry’s relative valuation by looking at its price-to-tangible book ratio (P/TBV), which is commonly used for valuing banks because of large variations in their earnings from one quarter to the next.
The industry currently has a trailing 12-month P/TBV of 3.08X. This compares with the highest level of 3.21X, the lowest of 1.85X and the median of 2.41X over the past five years. The industry is trading at a huge discount compared with the market at large, as the trailing 12-month P/TBV for the S&P 500 composite is 10.18X, as the chart below shows.
Price-to-Tangible Book Ratio (TTM)
As finance stocks typically have a lower P/TBV ratio, comparing major regional banks with the S&P 500 may not make sense to many investors. However, comparing the group’s P/TBV ratio with that of the broader sector ensures that the group is trading at a solid discount. The Zacks Finance sector’s trailing 12-month P/TBV came in at 6.05X. This is above the Zacks Major Regional Banks industry’s ratio, as the chart below shows.
Price-to-Tangible Book Ratio (TTM)
3 Major Regional Banks to Consider U.S. Bancorp: Headquartered in Minneapolis, MN, U.S. Bancorp provides banking and investment services, mainly operating in the Midwest and West regions of the United States. The company has expanded through several strategic acquisitions over the years, which have strengthened its market position, digital capabilities and diversified revenue streams.
In June 2026, the company completed the acquisition of BTIG, expanding its capital markets platform with institutional equity sales and trading, equity capital markets, electronic trading and M&A advisory capabilities. This, along with several other expansion efforts, will continue to strengthen USB’s fee-based businesses.
The company’s NII has been rising over the past few years. Going forward, less deposit migration, relatively lower rates and stabilizing funding costs will continue to support NII and NIM expansion. U.S. Bancorp has experienced steady growth in total loans and deposits during the past few years as it continues to expand and deepen relationships with current customers as well as acquire new customers and market share.
The company’s capital distributions seem impressive. Following the successful completion of the 2026 stress test, management plans to increase the quarterly dividend by 4% to 54 cents per share in the third quarter of 2026, subject to board approval. The company also continues to repurchase shares under its $5 billion buyback program. Given its consistent earnings and decent liquidity position, the company’s capital deployment activities seem to be sustainable.
USB, which carries a Zacks Rank #2 (Buy), has a market cap of $100.9 billion. The Zacks Consensus Estimate for earnings indicates growth of 13% and 10.4% for 2026 and 2027, respectively. The stock has rallied 21.6% over the past three months.
Price and Consensus: USB
State Street: Headquartered in Boston, MA, State Street provides a range of products and services for institutional investors worldwide through its subsidiaries. As of June 30, 2026, the company reported record assets under custody and administration (AUC/A) of $57.9 trillion and assets under management (AUM) of $6.28 trillion.
State Street's fee-based model continues to benefit from its scale in custody, asset management and markets, supported by strong flows, product expansion and broader distribution. While the company’s total fee revenues declined in 2022 and 2023, the metric saw a four-year (2021-2025) CAGR of 2.3%, mainly driven by higher client activity and significant market volatility. AUC/A and AUM recorded a CAGR of 5.3% and 8.2%, respectively, in the same time frame.
At the end of the first quarter, STT reported $2.93 trillion of AUC/A to be installed and $335 million of servicing fee revenues to be installed. This provides better forward visibility beyond near-term market swings, while continued Alpha mandate wins reinforce demand for integrated front-to-back solutions. State Street remains well-placed for fundamental business activities, given its global exposure and a broad array of innovative products and services.
This Zacks Rank #2 company has been using partnerships, minority stakes and strategic bolt-on acquisitions to expand growth platforms across investment, distribution and technology. Despite lower rates, State Street’s NII and net interest margin are expected to witness decent improvements in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
STT has a market cap of $48.7 billion. The Zacks Consensus Estimate for earnings indicates growth of 30.5% for 2026 and 11.2% for 2027. Over the past three months, the stock has gained 27.2%.
Northern Trust: With total assets worth $179.3 billion as of June 30, 2026, Northern Trust is a leading provider of wealth management, asset servicing, asset management and banking solutions to corporations, institutions, families and individuals.
Organic growth is the company’s key strength. Its revenues witnessed a CAGR of 5.7% over the last five years (2020-2025), driven by rising non-interest income and NII. As the client base expands, the company expects to see a steady rise in loan activity, particularly as its wealth management services attract more clients. This ongoing focus on wealth management is expected to drive growth in the lending portfolio.
Following the launch of Family Office Solutions for ultra-high-net-worth clients, NTRS’ investment management division, Northern Trust Asset Management, partnered with Envestnet in January to expand access to its tax-managed direct indexing solutions, enhancing distribution reach for this client segment. These initiatives, along with continued asset servicing wins and low double-digit wealth management trust fee growth, are expected to support fee income and strengthen organic growth momentum.
NTRS is undertaking expense management efforts to tackle expense growth and support operating leverage. It is focused on disciplined headcount management, vendor consolidation, rationalization of its real estate footprint and process automation. Through such efforts, it will likely improve productivity and meet the financial targets.
NTRS has a market cap of $34.9 billion. The Zacks Consensus Estimate for earnings indicates 28.6% and 9.1% growth in 2026 and 2027, respectively. The company, which carries a Zacks Rank of 2, witnessed a 15.6% rise in its stock price over the past three months.
State Street Corporation (NYSE:STT – Get Free Report)’s stock price hit a new 52-week high on Monday . The company traded as high as $194.82 and last traded at $193.8670, with a volume of 83442 shares. The stock had previously closed at $191.74.
Wall Street Analyst Weigh In A number of research firms have recently issued reports on STT. Argus raised their price target on shares of State Street from $140.00 to $168.00 and gave the stock a “buy” rating in a research report on Tuesday, April 21st. Truist Financial reaffirmed a “hold” rating and set a $191.00 price objective (up from $176.00) on shares of State Street in a research report on Friday, July 17th. Royal Bank Of Canada increased their price objective on shares of State Street from $155.00 to $196.00 and gave the stock a “sector perform” rating in a research note on Friday, July 17th. Barclays raised their target price on shares of State Street from $165.00 to $200.00 and gave the stock an “equal weight” rating in a report on Friday, July 17th. Finally, JPMorgan Chase & Co. upped their target price on State Street from $176.50 to $187.00 and gave the company a “neutral” rating in a report on Tuesday, August 4th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, State Street has a consensus rating of “Moderate Buy” and a consensus price target of $185.38.
Read Our Latest Analysis on State Street
State Street Trading Down 0.5% The firm has a 50-day moving average of $178.87 and a 200 day moving average of $152.80. The company has a current ratio of 0.59, a quick ratio of 0.59 and a debt-to-equity ratio of 1.04. The stock has a market capitalization of $52.75 billion, a price-to-earnings ratio of 16.93, a PEG ratio of 0.79 and a beta of 1.41. State Street (NYSE:STT – Get Free Report) last announced its quarterly earnings results on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.34 by $0.31. State Street had a return on equity of 15.26% and a net margin of 15.02%.The company had revenue of $4.05 billion during the quarter, compared to analyst estimates of $3.88 billion. During the same quarter in the previous year, the firm posted $2.04 EPS. The firm’s quarterly revenue was up 23.3% on a year-over-year basis. As a group, equities analysts predict that State Street Corporation will post 13.75 EPS for the current fiscal year.
State Street Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 13th. Investors of record on Thursday, October 1st will be paid a dividend of $0.92 per share. This is an increase from State Street’s previous quarterly dividend of $0.84. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Thursday, October 1st. State Street’s dividend payout ratio (DPR) is presently 29.63%.
Insider Buying and Selling In other State Street news, EVP W. Bradford Hu sold 9,758 shares of the firm’s stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $184.52, for a total transaction of $1,800,546.16. Following the transaction, the executive vice president owned 49,794 shares of the company’s stock, valued at approximately $9,187,988.88. This trade represents a 16.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael L. Richards sold 1,500 shares of the business’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $162.14, for a total transaction of $243,210.00. Following the sale, the executive vice president owned 41,827 shares in the company, valued at $6,781,829.78. This trade represents a 3.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 49,576 shares of company stock valued at $8,415,875 over the last 90 days. 0.27% of the stock is currently owned by company insiders.
Institutional Inflows and Outflows Several institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in shares of State Street during the 2nd quarter valued at $4,139,389,000. Regents of The University of California lifted its holdings in shares of State Street by 211.2% in the fourth quarter. Regents of The University of California now owns 8,706,195 shares of the asset manager’s stock valued at $1,123,186,000 after buying an additional 5,908,370 shares during the period. Norges Bank bought a new position in State Street during the fourth quarter valued at about $303,483,000. Legal & General Group Plc bought a new position in State Street during the second quarter valued at about $330,849,000. Finally, Bank of New York Mellon Corp bought a new stake in State Street in the second quarter worth about $301,393,000. 87.44% of the stock is currently owned by institutional investors.
About State Street (Get Free Report)
State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.
State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.
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Key Takeaways STT touches an all-time high and has outperformed the industry and peers over the past year. STT raises its 2026 NII growth outlook to 14-15% as NIM and funding conditions improve. State Street benefits from rising AUM, AUC/A, servicing wins and strategic investments in AI and technology. State Street Corporation (STT - Free Report) shares have performed remarkably well so far this year. The stock touched its all-time high of $195.18 during yesterday's trading session before closing at $191.74.
STT shares have rallied 73.7% over the past year, outperforming the industry’s 41% rise. When compared with its close peers, the performance is noticeably stronger. The Bank of New York Mellon Corporation (BNY - Free Report) has gained 62.5%, while JPMorgan Chase & Co. (JPM - Free Report) has rallied 24.2% in the same timeframe.
One-Year Price Performance
Image Source: Zacks Investment Research
Now, investors may wonder if the stock is worth adding to their portfolio at this level. To answer that, let’s delve deeper and examine the factors driving its investment appeal.
Factors Driving State Street’s PerformanceImproving Net Interest Income (NII) Outlook: State Street's NII remains a favorable contributor despite an uncertain rate backdrop, having recorded a four-year compound annual growth rate (CAGR) of 11.6% through 2025. Despite rising funding costs and shrinking non-interest-bearing deposit balances, its net interest margin (NIM) contracted to 1.00% in 2025 from 1.10% in 2024 and 1.20% in 2023. In the first half of 2026, both NII and NIM expanded, reflecting an improved funding mix and investment portfolio repricing. Management raised its 2026 NII growth outlook to 14-15%, from its prior 8-10% range, assuming average deposit balances remain at second-quarter 2026 levels. This indicates that balance sheet mix, deposit stability and portfolio repricing will continue to support NII and NIM even if broader balance sheet growth remains modest.
NII and NIM Quarterly Growth Trend
Image Source: State Street Corporation
Strong Fee-Based Growth: State Street's fee-based model continues to benefit from its scale in custody, asset management and markets, supported by strong flows, product expansion and broader distribution. While total fee revenues declined in 2022 and 2023, the metric recorded a four-year (2021-2025) CAGR of 2.3%. Asset Under Custody/Administration (AUC/A) and Asset Under Management (AUM) recorded CAGRs of 5.3% and 8.2%, respectively, during the same period. Fee income, AUC/A and AUM continued to trend higher in the first six months of 2026, supported by market levels, robust inflows and client activity. Management now expects fee revenues to increase 12-13% in 2026, up from its prior guidance of 7-9%, driven by continued organic growth in servicing and management fees and healthy Markets activity.
At the end of the second quarter, total AUC/A reached a record $57.9 trillion, while AUM hit a record $6.3 trillion. State Street generated $384 billion in new AUC/A wins and $87 million in servicing fee revenue wins during the quarter. The company also had $2.93 trillion of AUC/A and $335 million of servicing fee revenues yet to be installed. AUM net inflows totaled $114 billion, led by $81 billion into Index Strategies & Solutions and $35 billion into Cash, partly offset by $2 billion of outflows from Active, Alternatives & Other.
State Street has launched tokenized money market and stablecoin reserve offerings, strengthening its presence across ETFs, index strategies, digital assets and wealth channels. The strong AUC/A and AUM growth, robust inflows, servicing wins and sizeable uninstalled backlog provide better forward visibility, while continued Alpha mandate wins support demand for integrated front-to-back solutions. These factors, along with its global scale and strategic acquisitions, are expected to support fee revenue growth.
Solid Earnings Momentum: State Street surpassed the Zacks Consensus Estimate for earnings in recent quarters. The consensus estimates point to continued earnings growth in 2026 and 2027, with earnings expected to reach $13.75 per share in 2026 and $15.30 in 2027, up from $10.30 reported in 2025. This positive outlook supports management’s higher 2026 fee income and NII expectations, along with its medium-term targets of a 35% pre-tax margin, mid-20s ROTCE, positive operating leverage and greater platform scale.
Earnings Estimate
Image Source: Zacks Investment Research
Strategic Expansion and Financial Strength: State Street is leveraging partnerships, minority investments and strategic bolt-on acquisitions to expand its investment, distribution and technology platforms. The company is also accelerating technology modernization and AI adoption to improve efficiency and reinvest in growth, targeting $1 billion in annual run-rate transformation benefits by 2029, including $750 million in productivity savings and $250 million in revenue uplift. Last year, it partnered with Apex Fintech Solutions, Apollo, Bridgewater, Blackstone, Ethic, smallcase and Van Lanschot Kempen, invested in Coller Capital and Groww AMC, expanded in the Middle East and acquired PriceStats and Mizuho’s global custody businesses outside Japan.
These initiatives were backed by a strong capital and liquidity position, providing flexibility to invest, support clients and return capital. As of June 30, 2026, long-term debt was $25.7 billion and other short-term borrowings were $4.4 billion, while cash, due from banks and interest-bearing deposits totaled about $149.5 billion. Its investment-grade ratings and solid liquidity position should enable State Street to meet its obligations while pursuing growth opportunities.
Enhanced Capital Returns: Following the clearance of the 2026 stress test, State Street increased its quarterly dividend by 9.5% to 92 cents per share. Over the past five years, the company hiked annual dividends six times, with an annual growth rate of 9.1%. In 2024, the company was authorized to repurchase shares worth up to $5 billion (with no expiration date). As of June 30, 2026, $1.7 billion worth of authorization remained available. The company continues to expect the 2026 total payout ratio to be approximately 80%. Supported by strong capital and earnings, State Street is well positioned to sustain higher capital returns.
STT's Valuation AnalysisIn terms of valuation, STT stock appears slightly expensive relative to the industry. The company is currently trading at a forward 12-month P/E multiple of 13.11X, which is higher than the industry’s 13.00X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Meanwhile, JPMorgan holds a P/E F12M ratio of 14.59, while BNY’s P/E F12M ratio stands at 16.63. Hence, State Street is trading at a discount compared with its peers.
Final Thoughts on State StreetWhile elevated investment spending, significant reliance on fee income, premium valuation and uncertainty surrounding market conditions remain near-term concerns, these risks appear manageable given State Street’s strong capital position, robust liquidity and improving NII and fee income outlook.
Further, STT’s scaled fee franchise, growing AUM and AUC/A, servicing wins, strategic acquisitions and continued investments in technology and AI strengthen its long-term earnings growth prospects.
Hence, STT appears to be a solid investment option for investors seeking exposure to a well-capitalized custody bank with a diversified fee-based franchise, improving profitability and sustainable growth prospects.
State Street currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alberta Investment Management Corp acquired a new position in shares of State Street Corporation (NYSE:STT – Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 31,000 shares of the asset manager’s stock, valued at approximately $5,258,000.
Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp bought a new position in State Street in the second quarter valued at $301,393,000. Focus Partners Advisor Solutions LLC bought a new stake in State Street during the second quarter worth about $484,000. Kelleher Financial Advisors bought a new stake in State Street during the second quarter worth about $33,000. Clearstead Trust LLC purchased a new position in shares of State Street in the 2nd quarter worth about $516,000. Finally, Bridgewater Advisors Inc. bought a new position in shares of State Street during the 2nd quarter valued at about $353,000. 87.44% of the stock is currently owned by hedge funds and other institutional investors.
Insider Buying and Selling In related news, CEO Hanley Ronald P. O sold 14,553 shares of the business’s stock in a transaction dated Tuesday, July 21st. The stock was sold at an average price of $184.17, for a total transaction of $2,680,226.01. Following the transaction, the chief executive officer owned 240,959 shares in the company, valued at $44,377,419.03. The trade was a 5.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP W. Bradford Hu sold 9,758 shares of the company’s stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $184.52, for a total value of $1,800,546.16. Following the transaction, the executive vice president directly owned 49,794 shares of the company’s stock, valued at $9,187,988.88. The trade was a 16.39% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 49,576 shares of company stock valued at $8,415,875 over the last ninety days. 0.27% of the stock is owned by insiders.
Wall Street Analysts Forecast Growth STT has been the subject of several research reports. Weiss Ratings raised State Street from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, May 28th. The Goldman Sachs Group lifted their price target on shares of State Street from $168.00 to $194.00 and gave the stock a “buy” rating in a research note on Tuesday, June 30th. JPMorgan Chase & Co. boosted their price objective on shares of State Street from $176.50 to $187.00 and gave the stock a “neutral” rating in a report on Tuesday, August 4th. Wells Fargo & Company upped their price objective on shares of State Street from $196.00 to $215.00 and gave the company an “overweight” rating in a research note on Friday, July 17th. Finally, Zacks Research raised shares of State Street from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 21st. Two analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $185.38. Get Our Latest Report on STT
State Street Stock Up 0.9% Shares of State Street stock opened at $193.48 on Tuesday. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.59 and a current ratio of 0.59. State Street Corporation has a 52-week low of $104.64 and a 52-week high of $195.18. The stock has a market capitalization of $53.15 billion, a price-to-earnings ratio of 17.06, a P/E/G ratio of 0.79 and a beta of 1.41. The company’s 50 day moving average price is $178.29 and its 200-day moving average price is $152.35.
State Street (NYSE:STT – Get Free Report) last issued its earnings results on Thursday, July 16th. The asset manager reported $3.65 EPS for the quarter, topping the consensus estimate of $3.34 by $0.31. State Street had a net margin of 15.02% and a return on equity of 15.26%. The company had revenue of $4.05 billion for the quarter, compared to the consensus estimate of $3.88 billion. During the same period in the previous year, the firm earned $2.04 earnings per share. The firm’s revenue for the quarter was up 23.3% on a year-over-year basis. Equities research analysts forecast that State Street Corporation will post 13.75 EPS for the current year.
State Street Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 13th. Stockholders of record on Thursday, October 1st will be issued a dividend of $0.92 per share. This is an increase from State Street’s previous quarterly dividend of $0.84. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Thursday, October 1st. State Street’s dividend payout ratio (DPR) is currently 29.63%.
About State Street (Free Report)
State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.
State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.
Further Reading Five stocks we like better than State Street Commodities Are Booming, But These 3 ETFs Tell Different Stories 3 Active ETFs Making Big Moves in August This ETF Is Outperforming by Avoiding the S&P 500’s Biggest Problem Birkenstock Beats the Skeptics—But Not on EPS Want to see what other hedge funds are holding STT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for State Street Corporation (NYSE:STT – Free Report).
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On August 12, 2026, we present a DCF analysis for State Street Corp (STT), a financial services company that has shown impressive price performance recently, wi
Assenagon Asset Management S.A. lessened its holdings in shares of State Street Corporation (NYSE:STT – Free Report) by 18.8% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 32,744 shares of the asset manager’s stock after selling 7,599 shares during the quarter. Assenagon Asset Management S.A.’s holdings in State Street were worth $5,553,000 at the end of the most recent quarter.
Several other large investors have also modified their holdings of the stock. Wilkerson Advisory Group LLC acquired a new position in shares of State Street in the 4th quarter valued at $29,000. JPL Wealth Management LLC purchased a new stake in shares of State Street during the 3rd quarter valued at about $29,000. Phillip James Consulting Co. acquired a new position in shares of State Street during the fourth quarter worth $30,000. Whipplewood Advisors LLC purchased a new position in State Street in the 1st quarter valued at about $34,000. Finally, Reflection Asset Management acquired a new stake in State Street during the 4th quarter valued at approximately $35,000. 87.44% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth STT has been the topic of a number of recent analyst reports. Truist Financial restated a “hold” rating and issued a $191.00 target price (up from $176.00) on shares of State Street in a research note on Friday, July 17th. The Goldman Sachs Group lifted their price objective on shares of State Street from $168.00 to $194.00 and gave the company a “buy” rating in a research report on Tuesday, June 30th. Evercore set a $200.00 price target on State Street in a report on Monday, July 20th. Royal Bank Of Canada boosted their target price on State Street from $155.00 to $196.00 and gave the stock a “sector perform” rating in a report on Friday, July 17th. Finally, Barclays boosted their price target on shares of State Street from $165.00 to $200.00 and gave the stock an “equal weight” rating in a research report on Friday, July 17th. Two investment analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $185.38.
Get Our Latest Report on STT
State Street Stock Performance Shares of STT stock opened at $187.22 on Wednesday. The company has a market capitalization of $51.43 billion, a price-to-earnings ratio of 16.51, a P/E/G ratio of 0.77 and a beta of 1.41. State Street Corporation has a 1-year low of $104.64 and a 1-year high of $192.51. The company has a current ratio of 0.59, a quick ratio of 0.59 and a debt-to-equity ratio of 1.04. The stock’s fifty day simple moving average is $175.87 and its 200-day simple moving average is $150.54.
State Street (NYSE:STT – Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.34 by $0.31. State Street had a net margin of 15.02% and a return on equity of 15.26%. The business had revenue of $4.05 billion during the quarter, compared to analyst estimates of $3.88 billion. During the same period in the prior year, the firm earned $2.04 earnings per share. The firm’s revenue was up 23.3% compared to the same quarter last year. On average, sell-side analysts predict that State Street Corporation will post 13.75 earnings per share for the current fiscal year.
State Street Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 13th. Stockholders of record on Thursday, October 1st will be paid a dividend of $0.92 per share. This is a boost from State Street’s previous quarterly dividend of $0.84. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.0%. State Street’s dividend payout ratio (DPR) is 29.63%.
Insider Buying and Selling at State Street In other news, EVP Michael L. Richards sold 1,500 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $162.14, for a total transaction of $243,210.00. Following the completion of the sale, the executive vice president owned 41,827 shares in the company, valued at approximately $6,781,829.78. This represents a 3.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Hanley Ronald P. O sold 14,553 shares of the company’s stock in a transaction that occurred on Tuesday, July 21st. The stock was sold at an average price of $184.17, for a total value of $2,680,226.01. Following the sale, the chief executive officer directly owned 240,959 shares of the company’s stock, valued at $44,377,419.03. The trade was a 5.70% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 49,576 shares of company stock worth $8,415,875 over the last ninety days. 0.27% of the stock is currently owned by insiders.
State Street Profile (Free Report)
State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.
State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.
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State Street Investment Management President and CEO Yie-Hsin Hung says gold and private markets are anchoring many portfolios. Hung says the US economy is in good shape and the Federal Reserve should not raise interest rates this year.
BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE: STT) today announced the following scheduled conference calls for quarterly financial results: Third-Quarter 2026 – Wednesday, October 14, 2026 at 11:00 a.m. ET Fourth-Quarter and Full-Year 2026 – Friday, January 15, 2027 at 10:00 a.m. ET The quarterly financial results will be released at approximately 7:30 a.m. ET on the day of the associated conference calls. Materials will be available on State Street's Investor Relations website, htt.
On August 05, 2026, we present a DCF analysis for State Street Corp STT , a company that has shown remarkable price performance over the past year, with a 73.1% increase. The stock is currently trading at $185.23.
DCF Earnings-based intrinsic value of $156.74 vs current price ($185.23) indicates a margin of safety of -18.2%. DCF Free Cash Flow (FCF)-based intrinsic value stands at $85.59, suggesting a significant overvaluation. GF Score™ of 76/100 indicates a moderate reliability of the DCF inputs, but the predictability rank is low at 2/5 stars. What Is STT Worth? DCF Earnings-Based Model In our DCF earnings-based model, we assume a current EPS of $12.24, with a projected growth rate of 6.6% over the next 10 years. The discount rate is set at 11%, which combines the risk-free rate and equity risk premium. After the initial growth phase, we apply a terminal growth rate of 4% for the subsequent 10 years.
Parameter Value Current EPS (TTM, excl. non-recurring) $12.24 10-Year Growth Rate 6.6% 10-Year Treasury Rate 4.62% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% Our two-stage model consists of a growth phase for the first 10 years, followed by a terminal phase. The calculation summary is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 6.6%, discounted at 11% $98.65 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $58.09 Intrinsic Value Growth + Terminal $156.74 With the current price at $185.23, the intrinsic value of $156.74 indicates that the stock is modestly overvalued, resulting in a margin of safety of -18.2%. It is important to note that GuruFocus utilizes EPS excluding non-recurring items, as research shows that stock prices correlate more closely with earnings than free cash flow. For more detailed calculations, visit the STT DCF Calculator.
What Does the Free Cash Flow DCF Say? The Free Cash Flow (FCF)-based intrinsic value for State Street Corp is calculated at $85.59. This figure stands in stark contrast to the earnings-based intrinsic value of $156.74, indicating a significant overvaluation with a margin of safety of -116.4%. This divergence highlights the importance of considering multiple valuation perspectives when assessing a stock.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for State Street Corp is calculated at $123.16, providing a third perspective on the stock's valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—point towards an overvaluation of the stock, reinforcing the need for caution among potential investors. For further insights, check the GF Value™ page.
What Does STT's GF Score™ Tell Us? The GF Score™ evaluates various aspects of a stock's performance, including financial strength, profitability, growth potential, and valuation metrics. State Street Corp has a GF Score™ of 76/100, indicating a relatively strong performance overall. However, its predictability rank of 2/5 stars suggests that the DCF model may be less reliable for this stock due to its lower historical consistency.
Metric Rating GF Score™ 76/100 Financial Strength 3/10 Profitability 6/10 Growth 9/10 Valuation 3/10 Momentum 9/10 For more details on STT's performance, visit the STT stock page.
Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to assumptions regarding growth rates and discount rates. Stocks with low predictability ratings, such as State Street Corp, yield less reliable DCF estimates. The terminal growth rate of 4% used in our analysis is a simplifying assumption that may not fully capture future market conditions.
What This Means for Investors In summary, all three valuation models—DCF earnings, DCF FCF, and GF Value™—indicate that State Street Corp is overvalued at its current price of $185.23. The consensus among the models suggests caution for potential investors. Additionally, the guru ownership signal shows that 17 gurus currently hold the stock, with 6 adding and 8 trimming their positions in recent quarters. This mixed sentiment, coupled with insider selling of $10.5M over the past three months, further supports the view of overvaluation. For a comprehensive analysis, explore the STT DCF Calculator.
Frequently Asked Questions What is STT's intrinsic value based on DCF?
According to our analysis, the earnings-based intrinsic value is $156.74, while the FCF-based intrinsic value is $85.59.
Is STT overvalued or undervalued?
Both the DCF and GF Value™ models indicate that STT is overvalued at its current price.
How reliable is the DCF model for STT?
The predictability rank of 2/5 suggests that the DCF model is less reliable for this stock.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Lori Heinel, who oversees $5.7 trillion as Global Chief Investment Officer at State Street (NYSE:STT | STT Price Prediction), has a story that captures the strange asymmetry of great investment calls. She saw gold’s structural setup years before the metal broke through $3,000. She also had a front-row seat to Bitcoin at $500 and passed.
Both stories, told on Barry Ritholtz’s Masters in Business podcast, offer a lesson in how institutional investors think about diversifiers when the traditional playbook breaks.
The Gold Call That Took Years to Land Heinel said State Street was pitching gold to clients “six, seven years” before the metal’s recent surge past $3,000 and $4,000 an ounce. Her thesis rested on a simple observation about the failure of fixed income to play its traditional role in a 60/40 portfolio: “You had no income. You likely didn’t have a lot of diversification benefit from fixed income because how much lower could rates go?”
Layered on top was a macro concern most large asset managers were reluctant to voice publicly: fiscal profligacy and U.S. debt debasement. That framing has held up. The Federal Reserve’s M2 money supply reached $23.05 trillion in May 2026, up from $22.02 trillion in July 2025, sitting at the 90.9th percentile historically. Persistent liquidity expansion is the empirical spine of the debasement trade.
The frustrating part for Heinel: clients did not listen until the price told them to. “Very few of those clients did so until it went up to $3,000. Then suddenly you started to see more interest.” State Street still holds “a couple percent” in gold across its strategic allocation portfolios, a small but deliberate weight consistent with a diversifier rather than a directional bet.
The Bitcoin Miss She Owns Ritholtz pivoted to crypto with an observation Heinel could not dodge: “Bitcoin cut in half from the high” and much of the crypto narrative echoes historic arguments for gold. Some competitors have “aggressively pushed into” crypto; others have “steered clear.”
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Heinel offered a personal admission. Her daughter and boyfriend started mining Bitcoin in 2012 at around “$500 or $600”, and she dismissed it. “I thought they were crazy. You can’t just manufacture money.” She said she regretted not putting $10,000 into it. Ritholtz estimated the return at roughly $10 million, adding: “We would. It would just be on your yacht off of St. Barts.”
The math still favors the missed trade even after this year’s drawdown. Bitcoin currently trades at $62,609.94 as of July 31, well off its 2026 peak near $124,720 hit in early October 2025. Over the past decade, Bitcoin has returned around 9,375%, though it has fallen 46.11% over the last year and is down 28.48% year to date. Heinel’s daughter still comes out ahead. Most late buyers do not.
What Investors Should Actually Take From This The through-line of Heinel’s two stories is behavioral. Institutional clients ignored a well-argued gold thesis for years and only piled in after the price moved. Heinel herself dismissed Bitcoin on first principles and only reconsidered after the chart humiliated her. The full conversation is worth a listen on the Masters in Business feed.
The forward setup matters more than the backward-looking regret. With M2 still expanding, real rates volatile, and Bitcoin having round-tripped from $118,070 last July to $63,630 today, the debasement debate is not settled. Heinel’s discipline of holding a small, persistent gold weight through years of underperformance is the actionable model here. Diversifiers work when you own them before consensus arrives, and the price signal is almost always the last thing to confirm the thesis.
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Key Takeaways State Street agreed to acquire Santander CACEIS Latam Securities Services to expand in Latin America.STT will add about $470B in AUC and $225B in AUA, strengthening custody and fund administration.State Street expects the deal to enhance services across Brazil, Mexico and Colombia, pending 2027 close. State Street Corporation (STT - Free Report) has signed an initial agreement to acquire Santander CACEIS Latam Securities Services, a joint venture (JV) owned by Santander Group and CACEIS. This is part of the company’s effort to expand its investment servicing footprint across Latin America.
The JV oversees approximately $470 billion in assets under custody (“AUC”) and $225 billion in assets under administration (“AUA”) as of June 30, 2026. The transaction will strengthen State Street’s presence in Brazil, Mexico and Colombia by expanding its custody, foreign exchange, fund administration and other middle- and back-office services. This will enable the company to better serve both regional and global institutional investors.
The financial terms of the deal have not been revealed yet. It is expected to be closed sometime in 2027, subject to regulatory approvals, employee consultation processes and other customary closing conditions.
Following the completion, State Street plans to retain the JV’s experienced local workforce and continue operating through its existing market licenses and regulatory frameworks. The company expects the combination of its global servicing platform with the JV’s local expertise to strengthen its ability to support clients with cross-border investment needs while expanding access to fast-growing Latin American markets.
Our Take on State Street’s Global Expansion StrategyThe impending acquisition is in line with State Street’s strategy of expanding its global investment servicing franchise through targeted acquisitions. It will strengthen the company’s presence across Brazil, Mexico and Colombia, further broadening its footprint in Latin America’s largest institutional investment markets.
State Street also continues to expand through new investment servicing mandates and rising client assets. As of June 30, 2026, the company reported record assets under custody and/or administration (AUC/A) of $57.86 trillion and record assets under management (AUM) of $6.28 trillion. This reflects continued business wins, client inflows and favorable market conditions.
Additionally, STT remains focused on investing in technology and enhancing its end-to-end servicing capabilities to support long-term revenue growth.
Over the past month, shares of State Street have gained 7.6%, outperforming the industry's growth of 5.3%
Image Source: Zacks Investment Research
At present, STT sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Business Restructuring Steps Taken by Other Financial FirmsLast week, HSBC Holdings plc (HSBC - Free Report) agreed to sell its Singapore life and health insurance business to Allianz SE for $2.09 billion.
The divestiture aligns with HSBC's broader simplification and restructuring strategy of streamlining operations, exiting non-core businesses, redeploying capital to higher-return opportunities, and strengthening its core wealth management and wholesale banking franchises across Asia.
Earlier this month, Northern Trust Corporation (NTRS - Free Report) agreed to sell its guardianship services business to Wintrust Financial Corporation's subsidiary, Wintrust Private Trust Company.
The divestiture aligns with NTRS' broader strategy of strengthening its core wealth management, asset servicing, and asset management businesses while streamlining its portfolio and focusing investments on areas with stronger long-term growth potential.
Vanguard Financials ETF offers a broader financial sector portfolio and a significantly lower expense ratio than State Street SPDR S&P Bank ETF State Street SPDR S&P Bank ETF has delivered higher recent 1-year returns but historically shows much deeper price drawdowns Vanguard Financials ETF manages approximately $13.9 billion in assets under management compared to $1.6 billion for State Street SPDR S&P Bank ETF
Arrowstreet Capital Limited Partnership lowered its holdings in State Street Corporation (NYSE:STT – Free Report) by 72.4% in the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 393,727 shares of the asset manager’s stock after selling 1,031,558 shares during the quarter. Arrowstreet Capital Limited Partnership owned approximately 0.14% of State Street worth $49,830,000 at the end of the most recent quarter.
A number of other large investors have also recently made changes to their positions in STT. JPL Wealth Management LLC bought a new stake in State Street in the third quarter valued at $29,000. Wilkerson Advisory Group LLC bought a new position in State Street in the 4th quarter worth $29,000. Phillip James Consulting Co. purchased a new stake in shares of State Street in the 4th quarter worth about $30,000. Whipplewood Advisors LLC purchased a new stake in shares of State Street in the 1st quarter worth about $34,000. Finally, Measured Wealth Private Client Group LLC bought a new stake in shares of State Street during the 3rd quarter valued at about $35,000. 87.44% of the stock is currently owned by institutional investors.
Wall Street Analysts Forecast Growth Several analysts have weighed in on the company. UBS Group set a $176.00 price objective on State Street in a research report on Friday, June 26th. Weiss Ratings raised State Street from a “buy (b)” rating to a “buy (b+)” rating in a research report on Thursday, May 28th. Argus raised their target price on State Street from $140.00 to $168.00 and gave the company a “buy” rating in a research note on Tuesday, April 21st. Morgan Stanley lifted their price target on State Street from $183.00 to $195.00 and gave the company an “overweight” rating in a research report on Friday, July 17th. Finally, Citigroup upped their price target on State Street from $193.00 to $210.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $184.72.
Check Out Our Latest Report on STT
Insider Transactions at State Street In related news, CEO Hanley Ronald P. O sold 14,553 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $155.35, for a total transaction of $2,260,808.55. Following the completion of the sale, the chief executive officer owned 255,512 shares of the company’s stock, valued at $39,693,789.20. This trade represents a 5.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael L. Richards sold 1,500 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $162.14, for a total transaction of $243,210.00. Following the completion of the transaction, the executive vice president owned 41,827 shares of the company’s stock, valued at approximately $6,781,829.78. The trade was a 3.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 25,265 shares of company stock worth $3,935,103. Corporate insiders own 0.27% of the company’s stock.
State Street Price Performance Shares of NYSE:STT opened at $184.59 on Tuesday. The business has a fifty day moving average price of $169.67 and a 200-day moving average price of $146.44. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.59 and a quick ratio of 0.57. The company has a market capitalization of $51.09 billion, a PE ratio of 16.28, a PEG ratio of 0.77 and a beta of 1.42. State Street Corporation has a 1-year low of $104.64 and a 1-year high of $192.51.
State Street (NYSE:STT – Get Free Report) last announced its quarterly earnings results on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.34 by $0.31. State Street had a net margin of 15.02% and a return on equity of 15.26%. The company had revenue of $4.05 billion for the quarter, compared to analysts’ expectations of $3.88 billion. During the same quarter in the previous year, the business posted $2.04 EPS. State Street’s revenue was up 23.3% compared to the same quarter last year. As a group, equities analysts expect that State Street Corporation will post 13.68 EPS for the current fiscal year.
State Street Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 13th. Shareholders of record on Thursday, October 1st will be issued a $0.92 dividend. This represents a $3.68 annualized dividend and a yield of 2.0%. This is a boost from State Street’s previous quarterly dividend of $0.84. The ex-dividend date of this dividend is Thursday, October 1st. State Street’s dividend payout ratio is presently 32.45%.
State Street Profile (Free Report)
State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.
State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.
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BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE: STT) today announced that it has signed an initial agreement to acquire the Santander CACEIS Latam Securities Services joint venture in Brazil, Mexico, and Colombia. The joint venture is owned by the Santander Group and CACEIS, with assets under custody (AUC) of approximately $470 billion and assets under administration (AUA) of approximately $225 billion.1 The transaction will augment State Street's Latin American presence and establish.
The choice between Vanguard S&P 500 Growth ETF (VOOG -0.58%) and State Street SPDR S&P 600 Small Cap Growth ETF (SLYG -0.19%) hinges on whether an investor prefers large-cap stability and tech dominance or the potential higher volatility of small-cap growth.
These two funds target opposite ends of the market capitalization spectrum. While both prioritize growth factors, they operate in different universes: one captures the titan companies of the U.S. economy, and the other focuses on smaller firms with high expansion potential. This analysis compares their costs, risk profiles, and portfolios.
Snapshot (cost & size)MetricSLYGVOOGIssuerSPDRVanguardShare price$114.58 (as of 2026-07-23)$80.29 (as of 2026-07-23)Expense ratio0.15%0.07%1-yr return (as of 2026-07-23)26.2%18.8%Dividend yield0.7%0.4%Beta1.041.17AUM$5.1B$26.4BBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard S&P 500 Growth ETF is the more affordable option with an expense ratio of 0.07%, which is less than half of the 0.15% charged by the State Street fund. While both offer modest income, the yield gap reflects their primary focus on capital appreciation.
Performance & risk comparisonMetricSLYGVOOGMax drawdown (5 yr)(29.2%)(32.7%)Growth of $1,000 over 5 years (total return)$1,396$1,816What's insideThe Vanguard S&P 500 Growth ETF holds 212 stocks and is heavily tilted toward technology at 52%, communication services at 16%, and consumer cyclical at 9%. Its largest positions include NVIDIA Corp (NVDA -1.01%) at 13.64%, Microsoft Corp (MSFT +0.02%) at 7.80%, and Apple Inc (AAPL +3.52%) at 5.98%. The fund was launched in 2010. It has paid $0.37 per share over the trailing 12 months, which, at its recent ~$80.29 share price, yields 0.4%.
In contrast, the State Street SPDR S&P 600 Small Cap Growth ETF targets smaller firms with top holdings including Viasat Inc (VSAT -3.46%) at 1.15%, Corcept Therapeutics Inc (CORT -1.46%) at 1.06%, and Alkermes Plc (ALKS -0.15%) at 1.01%. This fund holds 350 positions, with a more balanced sector mix: industrials at 19%, technology at 18%, and healthcare at 17%. It was launched in 2000. It has paid $0.76 per share over the trailing 12 months, which, at its recent ~$114.58 share price, yields 0.7%.
For more guidance on ETF investing, check out the full guide at this link.
Which is the better buyThe Vanguard S&P 500 Growth ETF (VOOG) and the State Street SPDR S&P 600 Small Cap Growth ETF (SLYG) are both growth-oriented exchange-traded funds (ETFs), they employ very different strategies to deliver returns for investors. Let’s look at each fund individually.
First, there’s VOOG. This fund is loaded with tech megacap stocks. Indeed, just three stocks — Apple, Microsoft, and Nvidia — account for about 27% of the fund’s holdings. As for sectors, technology (67% of total holdings) is the largest, followed by financials (9%) and consumer durables (2%). Overall, the fund is almost entirely focused on the U.S. stock market, with more than 98% of all holdings in U.S. stocks. As for performance, VOOG has generated a total return of 385% over the last 10 years, with a compound annual growth rate (CAGR) of 17.1%. Both figures are outstanding and surpass the benchmark S&P 500, which has delivered a total return of 300%, equating to a CAGR of 14.9% over the same period. As for fees, VOOG has a low expense ratio of 0.07%.
Then, there’s SLYG. Unlike its counterpart, SLYG focuses on the small and mid cap growth sector. Rather than targeting tech giants, SLY invests in much smaller companies with market caps under $10 billion. For context, Microsoft has a market cap of $2.8 trillion, meaning SLYG’s holdings are very different from those in the VOOG portfolio. For example, SLYG's top sector holdings are technology (22%), followed by financials (21%) and manufacturing (9%). Turning to performance, the fund has delivered a total return of 182% over the last 10 years, with a CAGR of 10.9%. While this isn’t terrible by any means, the fund has underperformed the benchmark, the S&P 500, and fallen well short of VOOG’s returns. SLYG also has a slightly higher expense ratio at 0.15%.
In summary, these two funds are both acceptable choices for investors seeking exposure to the growth sector of the stock market. However, VOOG beats SLYG on both performance and fees. Yet, for investors seeking diversification away from the tech megacaps, SLYG offers a viable alternative.
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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at State Street Corporation (STT - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. State Street Corporation currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if STT is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For STT, shares are up 1.27% over the past week while the Zacks Banks - Major Regional industry is up 1.31% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 9.69% compares favorably with the industry's 4.93% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of State Street Corporation have increased 22.92% over the past quarter, and have gained 67.41% in the last year. On the other hand, the S&P 500 has only moved 5.37% and 20.16%, respectively.
Investors should also pay attention to STT's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. STT is currently averaging 2,512,177 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with STT.
Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost STT's consensus estimate, increasing from $12.35 to $13.68 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that STT is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep State Street Corporation on your short list.
Investors seeking financial exposure can choose between the broad-market State Street Financial Select Sector SPDR ETF (XLF -0.70%), which offers low-cost diversified access to the sector, or the more targeted State Street SPDR S&P Bank ETF (KBE -1.54%), for a more concentrated bet on the banking industry.
Both funds are managed by State Street (STT -0.20%), but they serve different roles in a portfolio -- XLF tracks the heavyweights of the S&P 500's financial sector, while KBE uses a modified equal-weighted strategy to provide exposure to banks across the market cap spectrum.
Snapshot (cost & size)MetricKBEXLFIssuerState StreetState StreetExpense ratio0.35%0.08%1-year return (as of July 21, 2026)22.03%8.75%Dividend yield2.15%1.51%Beta1.120.75AUM$1.5 billion$51.4 billionBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
XLF is the cheaper option, with a 0.08% expense ratio compared to KBE’s 0.35%. Income-focused investors may prefer KBE, which carries a dividend yield of 2.15% versus XLF’s 1.40%.
Performance & risk comparisonMetricKBEXLFMax drawdown (5 yr)(45.26%)(25.82%)Growth of $1,000 over 5 years (total return)$1,639$1,688What's insideLaunched in 1998, XLF holds 76 positions and provides broad exposure across financial services. Its largest positions include Berkshire Hathaway (BRKB +0.01%) at 12.1%, JPMorgan Chase & Co. (JPM -0.06%) at 11.5%, and Visa (V -0.91%) at 7.5%.
KBE holds 103 positions and focuses specifically on banking and its associated sub-industries, including asset management and mortgage finance. Top holdings include Rocket Companies (RKT -5.36%) at 1.2%, Nicolet Bankshares (NIC -0.84%) at 1.1%, and The Bancorp (TBBK -2.63%) at 1.2%. KBE launched in 2005.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investorsThe bigger question for investors isn't which of these funds is “better,” but how much banking-specific risk they actually want in their portfolio.
XLF's diversification across insurance, payments, and asset management -- not just banks -- has historically made it a smoother way to own the financial sector, and its rock-bottom 0.08% expense ratio makes it an easy fund to own for buy-and-hold investors.
KBE, by contrast, is a more concentrated, higher-conviction bet on banks themselves, and its equal-weighted approach means smaller regional and mid-cap banks can move the needle just as much as the mega-cap giants. That’s more potential upside -- and downside -- that investors don't get with most cap-weighted financial funds.
That trade-off shows up clearly in the numbers: KBE's 22% one-year return far outpaces XLF’s roughly 9% gain. But KBE’s 45% maximum drawdown over the last five years is a reminder that concentrated bank exposure can swing hard in both directions, especially during periods of rate volatility or credit stress. Neither outcome is unusual -- banking is historically one of the more cyclical corners of the financial sector, prone to bigger rallies and bigger pullbacks than diversified financial ETFs.
For investors who want steady, low-cost exposure to the broader financial sector, XLF is the more conservative choice. For those who have a specific view on banks -- say, expecting margins to improve as rates shift, or wanting to bet on a recovery in regional lenders -- KBE offers a more targeted way to invest in that view, provided they can stomach the extra volatility that comes with it.
JPMorgan Chase is an advertising partner of Motley Fool Money. Andy Gould has positions in Berkshire Hathaway, Rocket Companies, and Visa. The Motley Fool has positions in and recommends Berkshire Hathaway, JPMorgan Chase, Nicolet Bankshares, Rocket Companies, and Visa. The Motley Fool has a disclosure policy.
Investors might want to bet on State Street Corporation (STT - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For State Street Corporation, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe earnings estimate of $3.56 per share for the current quarter represents a change of +28.1% from the number reported a year ago.
Over the last 30 days, five estimates have moved higher for State Street compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 8.47%.
Current-Year Estimate RevisionsFor the full year, the earnings estimate of $13.35 per share represents a change of +29.6% from the year-ago number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, seven estimates have moved up for State Street versus no negative revisions. This has pushed the consensus estimate 8.13% higher.
Favorable Zacks RankThe promising estimate revisions have helped State Street earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineWhile strong estimate revisions for State Street have attracted decent investments and pushed the stock 8.4% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Boston Common Asset Management LLC cut its holdings in State Street Corporation (NYSE:STT – Free Report) by 15.7% in the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 30,757 shares of the asset manager’s stock after selling 5,712 shares during the period. Boston Common Asset Management LLC’s holdings in State Street were worth $3,893,000 at the end of the most recent reporting period.
A number of other large investors also recently made changes to their positions in the business. Nordea Investment Management AB grew its holdings in State Street by 15.4% in the 4th quarter. Nordea Investment Management AB now owns 2,829,271 shares of the asset manager’s stock valued at $367,041,000 after buying an additional 377,568 shares during the period. Clean Yield Group lifted its holdings in shares of State Street by 8,247.4% during the 4th quarter. Clean Yield Group now owns 19,199 shares of the asset manager’s stock worth $2,477,000 after acquiring an additional 18,969 shares during the period. IFM Investors Pty Ltd boosted its position in shares of State Street by 9.7% in the first quarter. IFM Investors Pty Ltd now owns 84,534 shares of the asset manager’s stock worth $10,699,000 after acquiring an additional 7,469 shares during the last quarter. Concurrent Investment Advisors LLC acquired a new stake in shares of State Street in the fourth quarter worth approximately $1,959,000. Finally, Heritage Family Offices LLP acquired a new stake in shares of State Street in the fourth quarter worth approximately $1,220,000. Hedge funds and other institutional investors own 87.44% of the company’s stock.
State Street News Summary Here are the key news stories impacting State Street this week:
Positive Sentiment: State Street delivered a Q2 earnings beat, reporting $3.65 EPS on $4.05 billion in revenue versus expectations of $3.34 EPS and $3.88 billion in sales, supported by higher fee income, stronger net interest income, and no credit-loss provision. State Street Corporation (NYSE: STT) Reports Second-Quarter 2026 Financial Results Positive Sentiment: Management’s update showed strong operating momentum, with assets under custody and management reaching record levels and revenue growth accelerating sharply year over year, reinforcing confidence in the company’s earnings power. State Street’s quarterly profit jumps 56% on strong fee income Positive Sentiment: Several analysts turned more constructive after the results, including KBW and Wells Fargo, both lifting their price targets to $215, while RBC raised its target to $196, signaling expectations for additional upside. These Analysts Raise Their Forecasts On State Street Following Upbeat Q2 Results Neutral Sentiment: Truist reaffirmed its hold rating but still increased its target to $191, suggesting the earnings strength improved valuation expectations even without a bullish rating change. Benzinga analyst update on State Street Neutral Sentiment: Commentary on digital custody, ETF pricing pressure, and macro-driven operating leverage adds context, but the immediate stock move appears to be driven mainly by the earnings beat and analyst upgrades. State Street Q2: Macro Conditions Continue To Drive Healthy Operating Leverage Analysts Set New Price Targets STT has been the subject of several research analyst reports. Evercore set a $186.00 price target on shares of State Street and gave the stock an “outperform” rating in a research report on Monday, July 6th. Wells Fargo & Company boosted their price objective on shares of State Street from $196.00 to $215.00 and gave the company an “overweight” rating in a research note on Friday. Argus upped their price objective on State Street from $140.00 to $168.00 and gave the stock a “buy” rating in a report on Tuesday, April 21st. Truist Financial reaffirmed a “hold” rating and issued a $191.00 target price (up from $176.00) on shares of State Street in a research report on Friday. Finally, Seaport Research Partners reiterated a “buy” rating and issued a $170.00 target price on shares of State Street in a report on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, State Street presently has a consensus rating of “Moderate Buy” and a consensus price target of $183.84.
Get Our Latest Research Report on State Street
State Street Trading Down 0.1% Shares of STT stock opened at $182.27 on Monday. The company has a quick ratio of 0.57, a current ratio of 0.59 and a debt-to-equity ratio of 1.04. State Street Corporation has a fifty-two week low of $104.64 and a fifty-two week high of $192.51. The firm’s 50 day moving average price is $165.83 and its two-hundred day moving average price is $144.18. The stock has a market cap of $50.45 billion, a price-to-earnings ratio of 16.07, a price-to-earnings-growth ratio of 0.90 and a beta of 1.42.
State Street (NYSE:STT – Get Free Report) last released its quarterly earnings data on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.34 by $0.31. State Street had a net margin of 15.02% and a return on equity of 15.26%. The company had revenue of $4.05 billion during the quarter, compared to analyst estimates of $3.88 billion. During the same quarter in the prior year, the business earned $2.04 earnings per share. The business’s quarterly revenue was up 23.3% compared to the same quarter last year. On average, analysts anticipate that State Street Corporation will post 13.35 EPS for the current year.
State Street Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 13th. Investors of record on Thursday, October 1st will be issued a $0.92 dividend. The ex-dividend date is Thursday, October 1st. This represents a $3.68 annualized dividend and a yield of 2.0%. This is an increase from State Street’s previous quarterly dividend of $0.84. State Street’s payout ratio is currently 29.63%.
Insider Buying and Selling In other State Street news, CEO Hanley Ronald P. O sold 14,553 shares of the business’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $155.35, for a total transaction of $2,260,808.55. Following the transaction, the chief executive officer owned 255,512 shares in the company, valued at $39,693,789.20. The trade was a 5.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael L. Richards sold 1,500 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $162.14, for a total value of $243,210.00. Following the completion of the sale, the executive vice president directly owned 41,827 shares of the company’s stock, valued at $6,781,829.78. The trade was a 3.46% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 37,876 shares of company stock valued at $5,866,583 in the last 90 days. 0.27% of the stock is currently owned by company insiders.
About State Street (Free Report)
State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.
State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.
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Compass Pathways (NASDAQ:CMPS)'s COMP360 treatment model may face fewer regulatory hurdles as new Phase II analysis distinguishes the company’s psychological support approach from psychotherapy, Jefferies analysts have highlighted.
In a note reviewing a post-hoc analysis of Compass Pathways (NASDAQ:CMPS)’ completed Phase II open-label trial of COMP360 in post-traumatic stress disorder (PTSD), Jefferies wrote that the study provided further detail on how the company’s treatment model separates monitoring and support during dosing sessions from traditional talk therapy.
The analysis examined audio recordings from 22 participants during COMP360 administration sessions, measuring interactions between patients and support providers. Jefferies highlighted that 78% of the more than six-hour dosing sessions were spent in silence, with providers largely remaining outside patients’ awareness while remaining available if needed.
The analysts wrote that the findings suggest the psychedelic experience was primarily inward-focused, with support staff serving a safety-monitoring role rather than actively engaging in psychotherapy. During the post-treatment integration period, participants spoke significantly more than providers, indicating that the sessions allowed patients to reflect on their experiences.
Although the analysis was conducted in a PTSD trial rather than Compass Pathways’ treatment-resistant depression (TRD) program, Jefferies noted that the company has applied a similar psychological support model across its clinical programs.
The report comes ahead of a September 2026 FDA hearing on psychedelics and Compass Pathways’ potential regulatory review of COMP360 for TRD. Jefferies estimated it has 75% to 85% confidence that the FDA will approve COMP360 for TRD by the end of 2026, citing positive results from three Phase IIb/III datasets, the therapy’s FDA Breakthrough Therapy Designation and the company’s receipt of an FDA CNPV voucher.
Jefferies also pointed to broader industry developments supporting the potential adoption of psychedelic treatments, including increasing interest from pharmaceutical companies and growing infrastructure for supervised psychedelic therapies. The analysts highlighted Spravato’s commercial performance as an indicator that patient demand and treatment-center capacity may support future adoption of COMP360.
The analysts wrote that the FDA’s recent psychedelic guidance further supports the distinction between psychological support and psychotherapy, noting that regulators have focused on evaluating whether psychotherapy contributes to treatment effects while psychological support is intended primarily to maintain patient safety.
Jefferies also noted that Compass Pathways’ trial design differs from the approach taken by Lykos Therapeutics’ MDMA-assisted therapy application, which was rejected by the FDA in 2024 for PTSD. The analysts wrote that the FDA had raised concerns around Lykos’ use of psychotherapy alongside treatment, among other issues.
The analysts maintained that Compass Pathways could eventually achieve peak sales of more than $1.5 billion, which they estimated could support a valuation of $3 billion to $4.5 billion based on a 2-3x multiple.
Shares of Compass Pathways are up about 80% so far this year, trading hands at about $12.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
State Street Corp. (NYSE:STT) on Thursday reported stronger-than-expected second-quarter results on Thursday.
The company posted earnings of $3.65 per share, topping analysts’ estimates of $3.29. Revenue increased 17% year over year (Y/Y) to $4.05 billion, exceeding the Street’s expectation of $3.88 billion.
“Following the release of the Federal Reserve’s stress test results, we recently declared a 10% per share increase to our third quarter common stock dividend, reflecting the resilience of our franchise and our continued focus on returning capital to shareholders,” said CEO Ron O’Hanley.
State Street shares gained 0.9% to $187.23 in pre-market trading.
These analysts made changes to their price targets on State Street following earnings announcement.
Barclays analyst Jason Goldberg maintained the stock with an Equal-Weight rating and raised the price target from $165 to $200. RBC Capital analyst Gerard Cassidy maintained the stock with a Sector Perform and raised the price target from $155 to $196. Considering buying STT stock? Here’s what analysts think:
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4:15pm: Semiconductor selloff Wall Street ended lower on Thursday, with semiconductor stocks leading the decline as investors took a step back from the AI trade despite another round of solid corporate earnings.
The Nasdaq bore the brunt of the selling, falling 387 points, or 1.5%, to 25,882 as chipmakers came under heavy pressure. The S&P 500 lost 39 points, or 0.5%, to close at 7,534, while the Dow proved more resilient, slipping 106 points, or 0.2%, to 52,553.
The biggest drag came from the semiconductor sector, where the Philadelphia Semiconductor Index tumbled as investors questioned whether massive spending on AI infrastructure will continue delivering the strong returns that have fueled the industry's rally. Major names including Nvidia, Micron Technology, and Broadcom all finished sharply lower, weighing heavily on the broader market.
Investors also looked ahead to Netflix's quarterly earnings, due after the closing bell, with the streaming giant expected to offer another glimpse into consumer demand and the health of the technology sector.
3:45pm: Proactive news headlines Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) retained its Outperform rating from Noble Capital Markets, which said the company is well-positioned for multiple development and exploration catalysts in the second half of 2026. Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) maintained its Outperform rating from Noble Capital Markets after successfully converting lithium carbonate from its Angel Island project into high-purity lithium metal and battery cells. AtaiBeckley Inc. (NASDAQ:ATAI, XETRA:9VC) agreed to be acquired by Eli Lilly in a deal worth up to approximately $3.8 billion, strengthening Lilly's neuroscience pipeline with investigational mental health therapies. American Resources Corp (NASDAQ:AREC) said its majority-owned subsidiary Electrified Materials Corporation completed a private placement that raised approximately $9.5 million in gross proceeds. Trillion Energy International Inc. (CSE:TCF, OTCQB:TRLEF, FRA:Z620) finalized plans for a 40-kilometre 2D seismic survey on its M47c,d oil block in Türkiye, with exploration work scheduled to begin in late summer 2026. Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF, FRA:0XD) reported preliminary testing from its Kavango West 1X discovery well in Namibia, successfully producing hydrocarbons to the surface and advancing testing of additional formations. Montero Mining and Exploration Ltd (TSX-V:MON, OTC:MXTRF) completed the first drill hole of its 2026 exploration program at the Elvira gold project in Chile, targeting high-priority mineralization identified through geological analysis and AI-assisted data integration. 374Water Inc (NASDAQ:SCWO, FRA:8LL) signed a memorandum of understanding with Arcadis to jointly pursue federal and commercial contracts for PFAS waste destruction using its AirSCWO technology. Medicus Pharma (NASDAQ:MDCX) received US FDA feedback and central Institutional Review Board approval for its optimized Phase 2 study of Teverelix, reducing planned enrollment while advancing development of the treatment for acute urinary retention. Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF, FRA:T2X) maintained its full-year production and cost guidance after second-quarter gold production from its Segilola mine in Nigeria kept the company on track to meet its annual targets. 2:45pm: Market movers AtaiBeckley Inc. (NASDAQ:ATAI, XETRA:9VC) agreed to be acquired by Eli Lilly and Co (NYSE:LLY) in a deal worth up to approximately $3.8 billion, strengthening Lilly's neuroscience pipeline with investigational mental health therapies. Cintas Corporation (NASDAQ:CTAS) was upgraded to Buy by Bank of America, which raised its price target after the company's stronger-than-expected fourth-quarter results and upbeat fiscal 2027 outlook reinforced confidence in its earnings growth. Abbott Laboratories (NYSE:ABT) shares surged after the healthcare company reported second-quarter earnings that beat expectations and raised its full-year adjusted earnings guidance. GE Aerospace reported better-than-expected second-quarter earnings and revenue, although its shares declined as investors focused on high expectations and moderating order growth. UnitedHealth Group Inc (NYSE:UNH, XETRA:UNH) shares rose in after-hours trading after the health insurer delivered stronger-than-expected second-quarter earnings and increased its full-year adjusted earnings outlook. Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) reported a 77% increase in second-quarter profit and raised its capital spending forecast as strong demand for AI chips continued to drive growth. Medicus Pharma (NASDAQ:MDCX) received US FDA feedback and central Institutional Review Board approval for an optimized Phase 2 study of Teverelix, reducing the planned enrollment while advancing development of the treatment for acute urinary retention. 1:15pm: Netflix due up Netflix Inc (NASDAQ:NFLX, XETRA:NFC) (Netflix Inc (NASDAQ:NFLX, XETRA:NFC), Netflix Inc (NASDAQ:NFLX, XETRA:NFC)) reports second quarter earnings tonight, and two major brokerages are sticking with their bullish calls even as the stock has struggled this year.
Shares were little changed Thursday at $73.50, but that stability masks a rough 2026 for Netflix investors: the stock has fallen more than 20% year-to-date.
Jefferies reiterated its Buy rating and $110 price target, while Bank of America kept its own Buy rating and $125 price objective. Both firms see the pullback as a buying opportunity rather than a red flag, even as they acknowledge the market's patience is being tested.
Jefferies doesn't expect a meaningful upside surprise in second quarter or full-year revenue guidance. It's forecasting constant-currency revenue growth of 12% year-over-year for both the second and third quarters, in line with Wall Street. The firm also doesn't expect Netflix to lift its full-year revenue outlook this quarter, citing soft third-party subscription data.
Bank of America is looking for largely in-line financial results, with investors more focused on the company's second-half outlook, engagement trends, and any commentary on acquisition appetite and broader strategic priorities.
11:50am: AI stocks out of favor Investors are still favoring stocks with little direct exposure to AI, according to Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
“Right now, not being so dependent on chip stocks is a good thing. The rotation in markets has seen money desert chip and AI stocks, and flow to areas where these are either less prominent or non-existent,” Beauchamp wrote.
“(T)he Dow and Russell 2000 continue to show greater resilience than the techy Nasdaq & S&P 500. This is all healthy market action, but is little comfort to latecomers to the tech rally, who were assuming that the euphoria for the sector would continue.”
10:55am: Retail sales rise US retail sales rose 0.2% in June from the previous month, reflecting lower gasoline prices while underlying consumer spending remained resilient.
Online retailers and auto dealers led June retail sales gains with 1.9% increases, while a sharp 5.3% drop in gasoline station sales—along with declines in clothing, grocery, and health and personal care stores—weighed on the overall results.
Bill Adams, chief US economist at Fifth Third Commercial Bank, said the softer headline growth was "actually good news," as it reflected falling gas prices rather than weakening demand.
Excluding gas stations, retail sales increased a robust 0.7% in June, while core retail sales (which exclude food services, gas stations and autos) rose 0.4%. Control group sales, which feed directly into GDP calculations, advanced 0.5%.
Adams also noted that upward revisions to April and May retail sales suggest stronger consumer spending than previously estimated, supporting expectations for an upgrade to second-quarter US GDP growth estimates.
10am: Uneven start There was another uneven start for Wall Street on Thursday with stocks searching for direction.
The Dow Jones started 0.2% higher, before slipping to flat, while the Nasdaq dropped over 1% initially before cutting this to an 0.8% deficit. The S&P 500 has slipped 0.3%.
Healthcare stocks led the gains after upbeat earnings, with Abbott jumping 11.8% to top the S&P leaderboard and insurer UnitedHealth rising 8.8%, making it the Dow's best performer.
Technology stocks remain under pressure, with SanDisk again the biggest faller on the Nasdaq 100, down 9.4%, followed by memory peers Seagate and Western Digital, both down around 7%, then AI chipmakers including Arm, Marvell, Micron, Qualcomm, Intel, Broadcom and Nvidia also traded lower.
8.05am: Wall Street futures mixed, Lilly dips toe in psychedelics with Atai deal Wall Street looked set for a mixed open Thursday with further yo-yoing in technology stocks amidst a fresh batch of corporate earnings.
Futures pointed to the Dow Jones opening 0.2%, while the S&P 500 was called down 0.2% and the Nasdaq looked set to bear the brunt of the selling, with futures off 0.8% as semiconductor stocks see pressure.
Oil prices were little changed, with West Texas Intermediate trading just below $80 a barrel, despite further escalation in the Middle East.
Iran's military said it had launched missiles and drones at US military positions in Kuwait, Bahrain and Jordan in retaliation for an earlier US strike, while Reuters reported Tehran had instructed Yemen's Houthi movement to prepare to close the Bab el-Mandeb Strait if Washington attacks Iran's power infrastructure, raising the prospect of disruption to a second key global shipping route.
The three major US indexes all finished higher on Wednesday after softer-than-expected producer price inflation reinforced expectations that the Federal Reserve will leave interest rates unchanged later this month.
The Dow rose 150 points, or 0.3%, to 53,141.48, the S&P climbed 0.4% to 7,614.75, and the Nasdaq Composite added 0.6% to close at 25,654.64.
Weakness in Asian semiconductor names seemed to spill into US futures, as markets were unimpressed with Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) beating expectations with a 77% jump in quarterly profit and upbeat guidance, citing "extremely robust" demand for AI chips. TSMC shares fell about 5% in US premarket trading though.
That follows a similar negative reaction to strong results from Dutch chip equipment maker ASML, highlighting investors' increasingly demanding expectations for AI-linked companies.
Before attention turns to Netflix Inc (NASDAQ:NFLX, XETRA:NFC) after the closing bell, there are a swathe of life science updates ahead of the open.
UnitedHealth Group Inc (NYSE:UNH, XETRA:UNH) rose 6% in premarket trading after the health insurer beat second-quarter earnings expectations and raised its full-year guidance, helped by stronger operational performance despite membership headwinds.
Abbott Laboratories (NYSE:ABT) gained 3.3% as investors welcomed better-than-expected quarterly results and an upbeat outlook.
Merck & Co Inc (NYSE:MRK, XETRA:6MK) added over 1% after the FDA approved its first-in-class cholesterol pill Liprendra, while second-quarter sales edged ahead of forecasts and the drugmaker reiterated its growth outlook.
AtaiBeckley Inc. (NASDAQ:ATAI, XETRA:9VC) surged almost 34% after agreeing to a $2.8 billion takeover by Eli Lilly, with the deal including additional milestone payments that could take the total value to $3.8 billion.
Prologis Inc (NYSE:PLD) was little moved after the logistics property group beat forecasts on both funds from operations and revenue in the second quarter, signalling resilient demand for warehouse space.
From the financials, State Street Corp (NYSE:STT) climbed after the custodian bank topped expectations for earnings, revenue, net interest income and assets under management in the second quarter.
State Street Corporation (STT) Q2 2026 Earnings Call July 16, 2026 11:00 AM EDT
Company Participants
Elizabeth Lynn - Executive VP & Global Head of Investor Relations
Ronald O’Hanley - CEO, President & Chairman
John Woods - Executive VP & CFO
Conference Call Participants
Alexander Blostein - Goldman Sachs Group, Inc., Research Division
Glenn Schorr - Evercore ISI Institutional Equities, Research Division
Michael Mayo - Wells Fargo Securities, LLC, Research Division
Kenneth Usdin - Bernstein Autonomous LLP
David Smith - Truist Securities, Inc., Research Division
James Mitchell - Seaport Research Partners
Ebrahim Poonawala - BofA Securities, Research Division
Manan Gosalia - Morgan Stanley, Research Division
Brennan Hawken - BMO Capital Markets Equity Research
Steven Chubak - Wolfe Research, LLC
Vivek Juneja - JPMorgan Chase & Co, Research Division
Gerard Cassidy - RBC Capital Markets, Research Division
Presentation
Operator
Good morning, and welcome to State Street Corporation's Second Quarter 2026 Earnings Conference Call and Webcast. Today's call will be hosted by Elizabeth Lynn, Head of Investor Relations at State Street. [Operator Instructions]
Today's discussion is being broadcast live on State Street's website at investors.statestreet.com. This conference call is also being recorded for replay. State Street's conference call is copyrighted and all rights are reserved. This call may not be recorded for rebroadcast or distribution in part or in whole without the express written authorization from State Street Corporation. The only authorized broadcast of this call will be on the State Street website.
Now I would like to hand the call over to Elizabeth Lynn.
Elizabeth Lynn
Executive VP & Global Head of Investor Relations
Good morning, and thank you all for joining us. On today's call, our CEO, Ron O'Hanley, and our CFO, John Woods, will review our second quarter 2026 results and provide an update on our medium-term financial outlook. Both are included in our earnings presentation, which is available in the Investor Relations section of our website at investors.statestreet.com. Following
The State Street SPDR S&P Aerospace & Defense ETF (XAR 2.73%) provides more affordable access to the defense and aircraft manufacturing industry, whereas the U.S. Global Jets ETF (JETS +0.00%) focuses specifically on global airline operators.
Investors looking to gain exposure to the aviation sector may find these two funds offer very different risk-return profiles. While one fund focuses on the cyclical nature of commercial travel, the other aligns with broader industrial manufacturing and national security spending.
Snapshot (cost & size)MetricJETSXARIssuerU.S. GlobalState StreetShare price$31.25 (as of 2026-07-15)$266.32 (as of 2026-07-15)Expense ratio0.60%0.35%1-yr return (as of 2026-07-15)27.20%24.50%Dividend yield0.70%0.30%Beta1.181.00AUM$851.4 million$6.0 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The State Street fund is the more affordable option, with an expense ratio of 0.35% compared to the 0.60% charged by the U.S. Global fund. In terms of income, the U.S. Global ETF provides a higher trailing distribution payout.
Performance & risk comparisonMetricJETSXARMax drawdown (5 yr)(40.40%)(28.30%)Growth of $1,000 over 5 years (total return)$1,415$2,190What's insideThe State Street SPDR S&P Aerospace & Defense ETF focuses on industrials at 98% and technology at 2%. It holds 47 positions, and its largest positions include Axon Enterprise (AXON +0.05%) at 3.35%, VSE (VSEC 3.03%) at 3.30%, and Hexcel (HXL 1.01%) at 3.05%. The fund was launched in 2011. The State Street SPDR S&P Aerospace & Defense ETF has paid $0.81 per share over the trailing 12 months, which on its recent ~$266.32 share price works out to a 0.30% yield.
The U.S. Global Jets ETF targets industrials at 89%, consumer cyclical at 8%, and technology at 3%. It holds 45 positions, and its top holdings include Southwest Airlines (LUV +0.40%) at 10.61%, American Airlines Group (AAL 0.19%) at 10.57%, and United Airlines (UAL 1.79%) at 10.56%. The fund was launched in 2015. The U.S. Global Jets ETF has paid $0.23 per share over the trailing 12 months, which on its recent ~$31.25 share price works out to a 0.70% yield.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investorsFor investors seeking exposure to the aviation industry, the State Street SPDR S&P Aerospace & Defense ETF (XAR) and U.S. Global Jets ETF (JETS) provide an efficient way to do so. Which to choose depends on whether you prefer XAR’s equal-weight approach to the aerospace and defense sector, or JETS’ focus on airlines using a tiered weighting methodology.
JETS represents a pure-play bet on the travel industry and commercial aviation. The fund allocates its portfolio holdings into tiers with the top four U.S. airlines each receiving 10% weighting, giving them an outsized impact on the ETF’s performance. The travel sector is on the upswing from pandemic-era struggles, making JETS a compelling fund to capture this growth, although its expense ratio is high and it’s more volatile than XAR, as illustrated by its higher beta and five-year max drawdown.
XAR provides exposure to the defense sector, which has seen increased federal spending under the Trump Administration. Its equal weighting ensures larger companies don’t dominate fund performance, which takes advantage of the higher growth potential of the smaller businesses among its holdings. XAR is the fund for investors who want to take advantage of the “Security Supercycle” driven by escalating geopolitical tensions and heavy government investment in military readiness and modernization.
Why State Street's Options Volume Just Sent a Bullish SignalState Street NYSE: STT reported sharply higher second-quarter 2026 earnings and raised its full-year outlook, as executives pointed to record fee revenue, record net interest income and continued momentum across investment servicing, investment management and markets.
Chief Executive Officer Ron O'Hanley said the quarter reflected “disciplined execution, deep client engagement, and continued momentum across our businesses.” The company reported second-quarter earnings per share of $3.65, up from $2.17 in the prior-year period. Excluding prior-year notable items, earnings grew 44% year over year, according to O'Hanley.
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Iron Mountain Down 23% From Its 1-Year High—Is It Undervalued?Total revenue rose 17% from a year earlier to a record $4 billion. Chief Financial Officer John Woods said fee revenue increased 16% to $3.2 billion, while net interest income rose 18% to $860 million, supported by a 17-basis-point increase in net interest margin to 113 basis points.
Expenses increased 10% year over year to $2.7 billion, excluding notable items, primarily due to higher revenue-related costs and continued strategic investments. The results lifted pre-tax margin by 470 basis points to 34%, while return on tangible common equity rose more than six percentage points to about 26%.
Servicing, Management and Markets Drive Growth The Behemoth BlackRock’s Next Trillion Comes From Private AssetsState Street’s investment servicing business posted second-quarter servicing fees of $1.5 billion, up 13% year over year. Woods said the increase reflected approximately 7% organic growth from client activity, flows and net new business, with additional support from higher average market levels and currency translation.
Assets under custody and administration ended the quarter at a record $57.9 trillion, up 18% from a year earlier. Servicing fee sales totaled $87 million, with Woods citing continued demand across regions and strength in strategic growth areas, including alternatives.
In investment management, fees rose 29% year over year to $772 million, supported by roughly 9% organic growth and higher average market levels. Assets under management reached a record $6.3 trillion, up 23% year over year, while net inflows totaled $114 billion. Woods said the quarter marked the fifth consecutive quarter of positive organic growth, led by $66 billion of index ETF inflows and $35 billion of cash inflows.
State Street also launched 38 new products and solutions during the quarter, including a tokenized money market solution and a stablecoin reserves fund. O'Hanley highlighted that SPYM, the company’s low-cost S&P 500 ETF, was selected by the U.S. Department of the Treasury as the exclusive default ETF for Trump Accounts.
Markets revenue also strengthened. FX trading services revenue increased 27% year over year, excluding a prior-year notable item, to $494 million, driven by record client volumes. Securities finance revenue rose 19% year over year on higher client lending balances. Software services revenue declined 14%, excluding a prior-year notable item, reflecting elevated on-premises renewal activity in the prior year, though Woods said software and data revenue rose 10%.
Outlook Raised for 2026 State Street raised its full-year outlook, excluding notable items. The company now expects fee revenue growth of 12% to 13%, up from its prior forecast of 7% to 9%. Net interest income is expected to grow 14% to 15%, compared with a previous outlook of 8% to 10%.
Woods said the improved net interest income outlook primarily reflected stronger average deposit balances. The company expects expenses to rise by roughly 8%, up from the prior 5% to 6% forecast, reflecting higher revenue-related costs and continued investment.
Based on its current outlook, State Street expects roughly 500 basis points of positive operating leverage in 2026 and a pre-tax margin of approximately 32%. The company continues to expect an effective tax rate of about 22% and a total payout ratio of roughly 80%, subject to board approval and other factors.
State Street’s capital position remained stable, with standardized CET1 and Tier 1 leverage ratios of 10.8% and 5.3%, respectively, at quarter end. The company returned $631 million to shareholders during the quarter through $400 million of share repurchases and $231 million in declared common dividends. Following the Federal Reserve’s stress test results, State Street announced a 10% increase in its quarterly common dividend to $0.92 per share beginning in the third quarter.
Company Sets Medium-Term Margin and Return Targets Executives also outlined new medium-term financial targets, including a 35% pre-tax margin and return on tangible common equity in the mid-20s “over the cycle.” O'Hanley said the company’s next phase of growth will be driven by three strategic pillars: growth in core businesses, initiatives in alternatives, digital assets and wealth services, and a technology- and AI-enabled transformation of the operating model.
Woods said investment services is expected to contribute approximately 300 basis points of enterprise margin expansion over the medium term through organic revenue growth and productivity initiatives. Investment management is expected to contribute about 200 basis points, supported by ETFs, index investing, fixed income, wealth, alternatives and tokenization. Markets is expected to add about 100 basis points through geographic expansion, product innovation and efficiency initiatives.
The company expects its transformation program to deliver approximately $1 billion of run-rate benefits by 2029, with about 75% coming from expense productivity and 25% from revenue. Woods said the company anticipates about $500 million of one-time costs, mostly related to severance, as part of the transformation.
During the question-and-answer session, Woods said State Street expects positive operating leverage of 100 to 150 basis points on average over the medium term, which could allow the company to reach the 35% margin target toward the earlier end of its three- to five-year framework. He said the company’s net interest income is expected to rise in the low- to mid-single digits over the medium term, supported by low-single-digit balance sheet growth and net interest margin moving toward the upper end of its 110- to 115-basis-point range.
Executives Discuss Digital Assets and AI O'Hanley described State Street’s digital asset strategy as focused on serving as infrastructure for clients moving between traditional and digital finance. He said the company is “picking our spots” based on client demand, including tokenized money market funds. Woods said State Street’s digital asset platform is designed to support wallet management and the on- and off-ramps between traditional finance and on-chain activity.
On artificial intelligence, Woods said AI will be embedded into State Street’s operating model, including the use of agentic capabilities in cross-functional teams. He also said the company expects AI tools to improve software developer productivity by 30% to 40%, with additional productivity gains across eligible employees through standardized AI tools.
O'Hanley said the company is entering its next phase “from a position of strength,” citing the scale of its custody, asset management, ETF and markets franchises. “These are the targets that we’re aiming for,” he said. “They’re ambitious, but we’re going to hit them.”
About State Street NYSE: STTState Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.
State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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BNY Mellon (NYSE:BK | BK Price Prediction) and State Street (NYSE:STT) both posted record Q1 2026 results as the two custody giants ride a wave of client activity and foreign exchange volumes. The comparison matters now because their strategies are pulling apart. BNY is leaning into platforms and AI. State Street is defending ETF share in a market where fees keep sliding.
Platforms Lift BNY. ETFs Squeeze State Street. BNY delivered $5.409 billion in revenue, a 37% pre-tax margin, and 42% EPS growth to $2.25 adjusted. Asset Servicing revenue jumped 22% and Clearance and Collateral Management gained 15%, which shows the diversified engine is firing. CEO Robin Vince said BNY “delivered the strongest quarterly sales performance in our history.”
State Street posted $3.80 billion in revenue with an adjusted pre-tax margin of 29.0%. Servicing fees rose 10.5% and management fees jumped 23%, but the company also absorbed $89 million in workforce repositioning charges. SPDR inflows were strong, yet the SPDR business is exactly where fee compression is fiercest.
Business Driver BNY Mellon State Street Revenue $5.41B $3.80B Pre-Tax Margin 37% 29% AUC/A $59.4T ~$53.8T An Asset-Light Monopoly Versus an ETF Price War BNY is running a platforms operating model with over 220 enterprise AI solutions in production and 40% of code authored by AI last quarter. That is a real cost lever. State Street’s 57 new product launches, including the Prime Money Market ETF and PRAB, signal aggressive shelf expansion, but adding low-fee vehicles to defend share can dilute the very margins investors want protected.
The custom research view is blunt: BNY offers a 26.4% net margin and 12.4% return on equity, versus State Street’s 19.5% margin and 10.4% ROE. That gap is structural.
The Next Test Is Fee Durability I will watch whether BNY converts its $17 billion in Q1 AUM outflows into a positive flow story, because Investment Management growth of 6% lags the rest of the portfolio. For State Street, the tell is whether the $315 million in servicing fees and $2.7 trillion in AUC/A pipeline installs at pricing that holds the current margin. You should also note that STT is already trading near its 52-week high of $174.59 after a 34.7% YTD run.
Why I Lean Toward BNY Mellon Right Now If you want a custody franchise with elite profitability and a credible AI cost story, I lean toward BNY. The 800+ basis points of positive operating leverage and new $10 billion buyback tell me management can compound earnings without stretching. State Street’s 1.94% dividend yield and 17x trailing PE may suit an income-focused investor, but I would not chase it after a 59.9% one-year rally while ETF fee pressure is intensifying. I would change my view on STT only if pricing in the SPDR complex stabilized and pre-tax margin sustained above 30%.
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State Street Corporation (STT - Free Report) came out with quarterly earnings of $3.65 per share, beating the Zacks Consensus Estimate of $3.3 per share. This compares to earnings of $2.53 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +10.61%. A quarter ago, it was expected that this company would post earnings of $2.6 per share when it actually produced earnings of $2.84, delivering a surprise of +9.23%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
State Street, which belongs to the Zacks Banks - Major Regional industry, posted revenues of $4.05 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.95%. This compares to year-ago revenues of $3.45 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
State Street shares have added about 44.6% since the beginning of the year versus the S&P 500's gain of 10.6%.
What's Next for State Street?While State Street has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for State Street was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.41 on $3.91 billion in revenues for the coming quarter and $12.75 on $15.45 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Major Regional is currently in the top 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Northern Trust Corporation (NTRS - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 22.
This company is expected to post quarterly earnings of $2.68 per share in its upcoming report, which represents a year-over-year change of +25.8%. The consensus EPS estimate for the quarter has been revised 3.5% higher over the last 30 days to the current level.
Northern Trust Corporation's revenues are expected to be $2.2 billion, up 10.1% from the year-ago quarter.
State Street has surged ~80% in the past year, driven by cost discipline, market appreciation, and a favorable rate environment. Q2 earnings exceeded expectations, with revenue up 17% and EPS at $3.65, but shares dipped post-earnings amid valuation concerns. STT's fee revenue growth lags AUC due to compression, but strong ETF flows, FX trading, and securities lending offset weaknesses in software services.
State Street Corporation (STT - Free Report) reported $4.05 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 17.4%. EPS of $3.65 for the same period compares to $2.53 a year ago.
The reported revenue represents a surprise of +3.95% over the Zacks Consensus Estimate of $3.89 billion. With the consensus EPS estimate being $3.30, the EPS surprise was +10.61%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how State Street performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Basel III Advanced Approaches - Tier 1 Leverage Ratio: 5.3% versus the three-analyst average estimate of 5.4%.Net interest margin (FTE): 1.1% versus 1.1% estimated by three analysts on average.Average balance - Total interest-earning assets: $305.41 billion compared to the $294.79 billion average estimate based on two analysts.Basel III Standardized Approach - Tier 1 capital ratio: 13.2% versus 13.9% estimated by two analysts on average.Assets under Management (AUM): $6,278.00 billion versus $6,182.00 billion estimated by two analysts on average.Net Interest Income: $860 million versus the three-analyst average estimate of $833.83 million.Total fee and other revenue: $3.19 billion compared to the $3.06 billion average estimate based on three analysts.Net Interest Income - fully taxable-equivalent basis: $860 million compared to the $833.83 million average estimate based on three analysts.Software services: $166 million versus $177.62 million estimated by two analysts on average.Other fee revenue: $138 million versus the two-analyst average estimate of $116 million.Management fees: $772 million versus the two-analyst average estimate of $747.55 million.Servicing fees: $1.47 billion versus $1.48 billion estimated by two analysts on average.View all Key Company Metrics for State Street here>>>
Shares of State Street have returned +9.1% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Key Takeaways State Street beat Q2 earnings estimates as record revenues, AUC/A and AUM supported strong results.STT's fee revenues rose 17.2% y/y and NII increased 18%, while no credit-loss provision boosted earnings.State Street's AUC/A reached a record $57.86T and AUM hit $6.28T, driven by market gains and inflows. State Street’s (STT - Free Report) second-quarter 2026 earnings of $3.65 per share surpassed the Zacks Consensus Estimate of $3.30. The bottom line increased 68.2% from the prior-year quarter.
Results were aided by year-over-year growth in net interest income (NII) and fee revenues, along with nil provisions. Also, the company witnessed improvements in the total assets under custody and administration (AUC/A) and assets under management (AUM) balances to record levels. However, higher expenses acted as a spoilsport.
Net income available to common shareholders (GAAP basis) was $1.03 billion, surging 62.9% from the year-ago quarter.
STT’s Revenues Improve, Expenses RiseTotal revenues were a record $4.05 billion, which increased 17.4% year over year. The top line surpassed the Zacks Consensus Estimate of $3.89 billion.
NII was $860 million, up 18% year over year.
The net interest margin expanded 17 basis points year over year to 1.13%.
Total fee revenues increased 17.2% year over year to $3.19 billion. The rise was driven by an increase in all fee income components, except for software services fees.
Non-interest expenses were $2.66 billion, up 5.1% from the prior-year quarter. The rise was due to an increase in all cost components, except for occupancy costs.
The company did not record any provision for credit losses in the quarter, as against $30 million in the prior-year quarter.
The Common Equity Tier 1 ratio was 10.8% as of June 30, 2026, compared with 10.7% in the corresponding period of 2025. The return on average common equity was 16.7% compared with 10.8% in the year-ago quarter.
Asset Balances Increase for State Street to Record LevelsAs of June 30, 2026, the total AUC/A was a record $57.86 trillion, up 18.1% year over year. The rise was driven by higher quarter-end equity market levels, client flows and net new business.
AUM was a record $6.28 trillion, up 22.7% year over year, led by higher quarter-end market levels and net inflows.
STT’s Share Repurchase UpdateIn the reported quarter, State Street repurchased shares worth $400 million.
Our Take on State StreetSTT’s strategic buyouts, rising AUM balance and solid business servicing wins are expected to keep supporting its financials. However, persistently rising expenses and concentrated fee-based revenues are concerning.
State Street currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other BanksThe Bank of New York Mellon Corporation’s (BNY - Free Report) second-quarter 2026 adjusted earnings of $2.46 per share handily surpassed the Zacks Consensus Estimate of $2.20. The bottom line increased 26.8% from the year-ago quarter.
BNY’s results primarily benefited from a rise in fee revenues and NII. Also, the company recorded a provision benefit in the quarter, which was a tailwind.
Bank of America’s (BAC - Free Report) second-quarter 2026 earnings of $1.21 per share handily surpassed the Zacks Consensus Estimate of $1.13. The bottom line grew 34.4% year over year.
BAC recorded an improvement in trading numbers for the 17th straight quarter. The company’s investment banking performance was solid this time as well. These, along with higher NII, drove Bank of America’s total revenues. While provisions declined in the quarter on a year-over-year basis, non-interest expenses increased, which hurt the results to some extent.
BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE: STT) reported its second-quarter 2026 financial results today. The news release, presentation and additional financial information can be accessed on State Street's Investor Relations website, http://investors.statestreet.com. A conference call to discuss the firm's financial results, outlook and related matters will be held at 11:00 a.m. ET today, Thursday, July 16, 2026. The call will be open to the public. The conference call will be a.
The State Street logo in this illustration taken April 24, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
July 16 (Reuters) - Custodian bank State Street (STT.N), opens new tab reported a rise in profit on Thursday, driven by a jump in fees earned from managing client assets.
Shares of the bank, which have gained nearly 45% in 2026 and outperformed the broader markets, were up 1.8% in trading before the bell.
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Here are more details from the earnings report:
The bank's assets under custody and administration jumped 18% to $57.86 trillion in the three months ended June 30 from a year earlier, driven by higher market levels, flows and net new business.
State Street reported investment management assets under management of $6.28 trillion, a growth of 23% over the year-ago period.
Its total fee revenue rose 17% to $3.19 billion in the quarter.
The bank's foreign exchange trading services revenue jumped nearly 26% to $494 million in the quarter, boosted by higher client volumes mostly in Asia-Pacific.
Its quarterly profit rose to $1.08 billion, or $3.65 per share, from $693 million, or $2.17 per share, a year earlier.
Reporting by Pritam Biswas in Bengaluru; Editing by Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Key Takeaways State Street recently raised its dividend to 92 cents per share, payable Oct. 13, 2026.GS boosted its quarterly dividend to $5 per share as part of five highlighted dividend growers.UNM offers the highest dividend yield among the five stocks at 2.1% after its latest dividend increase. At first glance, the U.S. economy looks remarkably stronger in the beginning of second half of 2026 than many investors expected. Despite solid stock market gains and easing inflation, several risk factors, such as geopolitical tensions, oil supply disruptions, trade uncertainties, and shifting Federal Reserve policies, continue to challenge the U.S. economy. The labor market has shown resilience, although the pace of hiring has slowed noticeably.
The June nonfarm payrolls increased by just 57,000, while ADP reported 98,000 new private-sector jobs. Although unemployment dipped to 4.2%, labor force participation fell to 61.5%, its lowest level since 2021, pointing to underlying weakness. Hiring has also become uneven, with manufacturing, construction and leisure sectors lagging.
Inflation has certainly improved, but investors should not assume that the problem has disappeared. June's Consumer Price Index fell 0.4% from the previous month, while annual inflation eased to 3.5% largely due to lower oil prices after the Strait of Hormuz reopened. However, military tensions, which have resurfaced several times, could quickly reverse that progress. Trade uncertainty, a wider $77.6 billion trade deficit, weak housing activity, and high mortgage rates remain additional concerns.
Meanwhile, the market's heavy reliance on AI-driven stocks and uncertainty over future Federal Reserve policy could increase volatility. These challenges suggest investors should remain selective and prepared for a more volatile market despite the economy's overall resilience.
Amid such market conditions, cautious investors who wish to diversify their portfolios and pick dividend-paying stocks can keep a tab on some prominent names, such as State Street (STT - Free Report) , The Goldman Sachs Group (GS - Free Report) , Cummins (CMI - Free Report) , Ryder System (R - Free Report) and Unum Group (UNM - Free Report) . Companies that pay out dividends consistently indicate a healthy business model. Stocks that have raised dividends recently exhibit a sound financial structure and can counter market upheavals. Moreover, stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying entities in a highly volatile market.
State StreetState Street provides a range of financial products and services for institutional investors worldwide through its subsidiaries. This Zacks Rank #2 (Buy) company is headquartered in Boston, MA. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On July 14, STT declared that its shareholders would receive a dividend of 92 cents a share on Oct. 13, 2026. STT has a dividend yield of 1.8%.
Over the past five years, STT has increased its dividend six times, and its payout ratio presently sits at 30% of earnings. Check State Street's dividend history here.
Goldman SachsGoldman Sachs is headquartered in New York, NY. This Zacks Rank #2 is a leading global financial holding company providing IB, securities, investment management, and consumer banking services to a diversified client base.
On July 13, GS declared that its shareholders would receive a dividend of $5 a share on Sept. 29, 2026. GS has a dividend yield of 1.6%.
In the past five years, GS has increased its dividend seven times. Its payout ratio is currently 33% of earnings. Check Goldman Sachs’ dividend history here.
CumminsCummins is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products. This Columbus, IN-based company currently carries a Zacks Rank #2.
On July 12, CMI declared that its shareholders would receive a dividend of $2.20 a share on Sept. 3, 2026. CMI has a dividend yield of 1.2%.
Over the past five years, CMI has increased its dividend six times, and its payout ratio presently sits at 33% of earnings. Check Cummins’ dividend history here.
Ryder SystemRyder System is headquartered in Coral Gables, FL. This Zacks Rank #2 company is recognized as one of the world's largest providers of integrated logistics and transportation solutions.
On July 9, R declared that its shareholders would receive a dividend of $1.01 a share on Sept. 18, 2026. R has a dividend yield of 1.4%.
In the past five years, R has increased its dividend six times. Its payout ratio is currently 28% of earnings. Check Ryder System’s dividend history here.
Unum GroupUnum Group provides financial protection benefit solutions in the United States, the United Kingdom and Poland. This Chattanooga, TN-based company currently carries a Zacks Rank #3 (Hold).
On July 9, UNM announced that its shareholders would receive a dividend of 51 cents a share on Aug. 14, 2026. UNM has a dividend yield of 2.1%.
Over the past five years, UNM has increased its dividend six times. Its payout ratio now sits at 22% of earnings. Check Unum Group's dividend history here.
BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE:STT) today announced a quarterly cash dividend of $0.92 per share of common stock, payable on October 13, 2026 to common shareholders of record at the close of business on October 1, 2026. Additionally, State Street Corporation announced a cash dividend on each of the below outstanding series of non-cumulative perpetual preferred stock: Series G (represented by depositary shares, each representing a 1/4000th interest in a share of Series G.
US banks could deliver broad earnings beats as strong capital markets activity, resilient economic conditions and improving wealth management flows support second-half 2026 and fiscal 2027 earnings revisions, Bank of America analysts wrote in a note ahead of the sector’s upcoming earnings reports.
The firm wrote that it expects all eight major banks it covers, including JPMorgan Chase & Co (NYSE:JPM, XETRA:CMC), Citigroup Inc (NYSE:C), Wells Fargo & Co (NYSE:WFC, XETRA:NWT), Goldman Sachs Group Inc (NYSE:GS, XETRA:GOS), Morgan Stanley (NYSE:MS), Bank of New York Mellon Corp (NYSE:BK, XETRA:BN9), State Street Corp (NYSE:STT) and Northern Trust Corp (NASDAQ:NTRS), to exceed both Bank of America and consensus earnings-per-share estimates.
It added that potential upside in net interest income, particularly at JPMorgan and Citigroup, along with stronger wealth management flows at Morgan Stanley (NYSE:MS) and Northern Trust, could support positive investor reactions.
The firm noted that while investors often look past trading and investment banking revenue beats because they are not always incorporated into long-term estimates, stronger underlying revenue trends could lead to broader earnings revisions.
JPMorgan Chase is among the stocks Bank of America views as having the most asymmetric risk-reward setup heading into results. The firm wrote that investors remain focused on management’s cautious commentary around current earnings levels, with executives previously warning that the bank may be “over-earning” in the near term. However, Bank of America expects stronger capital markets revenue to support second-quarter earnings, raising its EPS estimate to $5.59 from $5.48.
Citigroup could also see continued momentum, with Bank of America writing that the company’s conservative guidance contrasts with a strong operating environment. The firm expects stronger capital markets revenue to lift its second-quarter EPS estimate to $2.65 from $2.60, while noting that investors will be watching progress toward return on tangible common equity targets.
For Wells Fargo, Bank of America wrote that investor focus will remain on net interest income growth and whether the bank can achieve its targeted returns while executing its broader growth strategy. The firm maintained its second-quarter EPS estimate of $1.72, noting that confidence around Wells Fargo’s ability to deliver on its net interest income outlook could be key for the stock’s performance following results.
Morgan Stanley enters earnings with positive momentum tied to its wealth management business, trading operations and international franchise, according to Bank of America. The firm wrote that investors will be watching net new asset growth in wealth management, particularly following recent initial public offerings and continued integration benefits from its workplace business. Bank of America raised its second-quarter EPS estimate for Morgan Stanley to $2.81 from $2.71 due to stronger capital markets revenue expectations.
Goldman Sachs is expected to report strong revenue trends, though Bank of America wrote that investors will be looking for evidence that earnings growth and return on equity remain sustainable following the stock’s recent outperformance. The firm raised its second-quarter EPS estimate to $14.11 from $13.18 on stronger capital markets revenue expectations.
Bank of America wrote that Goldman Sachs’ capital management, efficiency initiatives and ability to sustain returns through market cycles will remain key areas of investor attention. The firm added that while stronger trading and investment banking activity could drive an earnings beat, investors may place greater emphasis on the durability of future earnings growth and the bank’s premium valuation.
