Is State Street Corporation Stock Outperforming the S&P 500?
Boston, Massachusetts-based State Street Corporation (STT) provides a range of financial products and services to institutional investors. Valued at a market cap of $50.9 billion, it offers custody, accounting, and fund administration services for traditional and alternative assets, as well as multi-asset-class investments, recordkeeping, client reporting, and more.
Companies with a market cap of $10 billion or more are typically referred to as "large-cap stocks." STT fits squarely in that category, with a market cap above this threshold that reflects its size and influence in the asset management industry.
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Despite its strength, STT stock slipped 5.9% from its 52-week high of $195.95, reached on Aug. 27. The stock is up 7.7% over the past three months, rallying the S&P 500 Index's ($SPX) marginal rise during the same time frame.
Moreover, the scenario remains the same in the longer term. The stock has risen 67% over the past 52 weeks, while SPX delivered 14.7% returns over the same time frame, underperforming the stock.
STT has been trading above its 200-day moving average since last year, indicating long-term bullish momentum, and below its 50-day moving average since this week.
Investors and analysts have considered STT in high regard as a result of its impressive quarterly earnings history. The company's second-quarter earnings release on July 16 was no different. Its revenue rose 16.7% from the prior year's quarter to $4.1 billion and surpassed the Street's estimates, boosted by a robust increase in its assets under management, which also surpassed consensus estimates. Additionally, its adjusted EPS came in at $3.65, coming in above Wall Street's forecasts as well.
When stacked against its rival, Apollo Global Management, Inc. (APO), STT has outperformed. Over the past year, APO stock has declined 9.2%.
Analysts' view of STT stock is somewhat bullish. Among the 18 analysts covering the stock, the overall consensus rating is "Moderate Buy." Its mean price target of $204.62 offers a 10.4% upside potential.
