Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
-- State Street
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A- . The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass
Highlights from the ratings report include:
- Powered by its strong earnings growth of 31.57% and other important driving factors, this stock has surged by 33.57% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, STT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- STATE STREET CORP has improved earnings per share by 31.6% 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 two years. We feel that this trend should continue. During the past fiscal year, STATE STREET CORP increased its bottom line by earning $4.19 versus $3.79 in the prior year. This year, the market expects an improvement in earnings ($4.42 versus $4.19).
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 3.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for STATE STREET CORP is currently very high, coming in at 95.70%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 18.35% trails the industry average.
State Street Corporation, a financial holding company, provides investment servicing and investment management services to institutional investors worldwide. State Street has a market cap of $27.1 billion and is part of the financial sector and financial services industry. The company has a P/E ratio of 14.1, below the S&P 500 P/E ratio of 17.7. Shares are up 26.1% year to date as of the close of trading on Tuesday.
You can view the full
or get investment ideas from our
--Written by a member of TheStreet Ratings Staff.
It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE