State Street (STT): Taking Stock of Valuation After a Strong Multi‑Year Share Price Run
State Street (STT) has quietly put up a solid run, with shares gaining roughly 30% this year and about 12% over the past 3 months, as earnings and margin trends keep improving.
See our latest analysis for State Street.
At a share price of $127.36, State Street’s momentum looks like it is still building, with a 30 day share price return of 12.51% feeding into a 37.64% one year total shareholder return and an 81.17% total shareholder return over three years.
If this kind of steady compounding appeals to you, it could be worth exploring fast growing stocks with high insider ownership as a way to spot other under the radar opportunities.
With earnings growing faster than revenue and the shares still trading at a modest discount to analyst targets, the big question now is whether State Street remains mispriced value or if the market is already baking in its future growth?
Most Popular Narrative Narrative: 2.1% Undervalued
With State Street last closing at $127.36 against an implied fair value of about $130, the most followed valuation narrative sees only a small disconnect, but it rests on some specific growth and margin assumptions that deserve a closer look.
Ongoing investment in technology, data analytics, automation, and the expansion of the Alpha platform are enabling higher productivity, deeper client engagement, and scalable solutions, leading to operational efficiencies, cost savings, and improving net margins, evidenced by over $1 billion of expense savings with a further $500 million targeted by year end.
Want to see how modest revenue growth, fatter margins, and a deliberately lower future earnings multiple still add up to upside potential? The narrative lays out a detailed roadmap that quietly challenges what the current share price implies.
Result: Fair Value of $130 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, rapid blockchain driven settlement changes and persistent fee compression in ETFs could challenge State Street’s core custody economics and its long term earnings power.
Find out about the key risks to this State Street narrative.
Build Your Own State Street Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a custom narrative in just a few minutes: Do it your way.
A great starting point for your State Street research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
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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.
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