This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Bank Stocks Bernanke Can't Hurt Anymore

3. Northern Trust
Shares of Northern Trust (NTRS) of Chicago closed at $48.64 Monday, returning 25% year-to-date, following last year's 27% decline.

The shares trade for 1.8 times tangible book value, and for 14.5 times the consensus 2013 EPS estimate of $3.35. The consensus 2012 EPS estimate is $2.94.

Based on a quarterly payout of 30 cents, the shares have a dividend yield of 2.47%.

Northern Trust reported second-quarter net income of $179.6 million, or 73 cents a share, increasing from $161.2 million, or 66 cents a share in the first quarter, and $152 million, or 62 cents a share, during the second quarter of 2011.

The company's second-quarter ROA was 0.78%, increasing from 0.68% the previous quarter, and 0.66% a year earlier. The return on average equity was 9.91% during the second quarter, increasing from 9.04% in the first quarter, and 8.76% in the second quarter of 2011.

Northern Trust's second-quarter net interest income accounted for 26% of total revenue. The second-quarter net interest margin was 1.28%, increasing from 1.24% the previous quarter, and 1.23% a year earlier. Mosby estimates that Northern Trust's net interest margin will decline by eight basis points through the end of 2013.

Mosby rates Northern Trust a "Buy," and on Monday raised his price target for the shares by two dollars to $59, "due to the recent acceleration in efficiency gains." The analyst said that "NTRS has one of the strongest capital positions in our coverage, high long-term returns on capital, and a proven risk avoidance strategy," which has "historically created a good, low-risk long-term investment."

The analyst went on to say that "NTRS has over $20 billion in short-term investments, which could be deployed to earn at least 2% more in yield, or add roughly $1 in annualized earnings per share power," although "like the other trust banks, NTRS is exposed to changes in market valuations and revenue margins, which would be significantly unfavorably impacted by a near-term recession."

NTRS Chart NTRS data by YCharts

Interested in more on Northern Trust? See TheStreet Ratings' report card for this stock.

5 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BAC $16.67 0.00%
C $54.55 0.00%
JPM $66.20 0.00%
RF $10.22 0.00%
WFC $56.21 0.00%

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs