Rating Change #2
State Street Corp (STT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 30.2%. Since the same quarter one year prior, revenues rose by 11.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- STATE STREET CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, STATE STREET CORP increased its bottom line by earning $3.79 versus $3.08 in the prior year. This year, the market expects an improvement in earnings ($4.00 versus $3.79).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 359.0% when compared to the same quarter one year prior, rising from $83.00 million to $381.00 million.
- The gross profit margin for STATE STREET CORP is currently very high, coming in at 93.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.40% is above that of the industry average.
State Street Corporation, through its subsidiaries, provides various financial services and products to the institutional investors worldwide. The company has a P/E ratio of 13.4, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. State Street has a market cap of $21.12 billion and is part of the financial sector and banking industry. Shares are down 0.9% year to date as of the close of trading on Thursday.You can view the full State Street Ratings Report or get investment ideas from our investment research center.
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