State Street stock at a glance
State Street (STT) has drawn fresh attention after its recent share performance, with the stock closing at US$152.85 and posting gains over the past week, month and past 3 months.
See our latest analysis for State Street.
Recent trading has been positive overall, with a 30-day share price return of 5.10% and a 90-day gain of 19.44%. The 1-year total shareholder return of 59.87% and 3-year total shareholder return of 148.10% point to strong ongoing momentum.
If State Street’s run has you thinking about where else growth stories might be building, it could be worth scanning for 19 top founder-led companies.
With State Street trading at US$152.85, sitting below an analyst price target of US$160.54 and an estimated intrinsic value gap of 17.45%, investors may ask whether there is still a buying opportunity or whether the market is already pricing in the company’s prospects.
Most Popular Narrative: 2.9% Undervalued
At a last close of $152.85 versus a narrative fair value of $157.46, State Street is framed as modestly undervalued, with that view built on detailed assumptions about fees, margins, and capital returns.
The acceleration of passive and ETF investing continues to benefit State Street's leading SPDR ETF franchise, as evidenced by significant inflows, expanding market share in low-cost products, and record trading volumes, which are expected to drive increased recurring management fees and higher operating margins over time.
Curious what sits behind that fair value tag? The narrative leans heavily on compounding fee income, rising profitability, and a future earnings multiple that is presented as highly considered rather than casual.
Result: Fair Value of $157.46 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this narrative could be challenged if blockchain based settlement meaningfully reduces demand for traditional custody services, or if fee compression in ETFs hits margins harder than expected.
Find out about the key risks to this State Street narrative.
Next Steps
With both risks and rewards in play, it makes sense to look past the headline and weigh the data yourself. Then move quickly while the picture is clear by reviewing the 5 key rewards and 2 important warning signs.
Looking for more investment ideas?
If you stop with just one stock, you could miss opportunities that fit your goals even better, so put the Simply Wall Street Screener to work for you.
- Target potential value opportunities by scanning companies that show strong fundamentals and trade below their estimated worth using the 51 high quality undervalued stocks.
- Anchor your portfolio around income by reviewing the 13 dividend fortresses for stocks offering higher yields with support from their financials.
- Dial back risk while still staying invested by checking the 65 resilient stocks with low risk scores that highlights companies with more resilient profiles.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com