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State Street (STT, $80.55) beats Q1 earnings expectations; but net interest income disappoints
Financial services company State Street posted its first-quarter results that surpassed analysts’ estimates. However, its revenue from interest on loans was below expectations.
State Street’s adjusted earnings for the quarter came in at $1.47 a share, compared to $1.35 a share expected by analysts.
Revenue fell around -4% year-over-year to $2.95 billion, also higher than analysts’ estimates of $2.87 billion. Fee revenue rose +4% in the quarter while servicing fees climbed +7%. Its management fees increased +6% and securities finance was +8% higher in the quarter.
Net interest income fell -30% from the year-ago quarter to $467 million, lower than the consensus forecast of $470 million.
The company’s total expenses increased +3%, which it largely attributed to currency headwind.
Momentum Indicator for STT turns positive, indicating new upward trend
STT saw its Momentum Indicator move above the 0 level on May 23, 2022. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned positive. In 57 of the 88 cases, the stock moved higher in the following days. The odds of a move higher are at 65%.
Current price $71.00 is below $71.39 the lowest support line found by A.I. Throughout the month of 04/26/22 - 05/26/22, the price experienced a +5% Uptrend. During the week of 05/19/22 - 05/26/22, the stock enjoyed a +8% Uptrend growth.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where STT's RSI Indicator exited the oversold zone, 15 of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 56%.
The Moving Average Convergence Divergence (MACD) for STT just turned positive on May 04, 2022. Looking at past instances where STT's MACD turned positive, the stock continued to rise in 22 of 41 cases over the following month. The odds of a continued upward trend are 54%.
Following a +3.38% 3-day Advance, the price is estimated to grow further. Considering data from situations where STT advanced for three days, in 212 of 338 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
The Stochastic Indicator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where STT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
The Aroon Indicator for STT entered a downward trend on May 26, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 63%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.04.
The Tickeron SMR rating for this company is 8 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 16 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.075) is normal, around the industry mean (2.122). P/E Ratio (9.606) is within average values for comparable stocks, (13.932). Projected Growth (PEG Ratio) (1.175) is also within normal values, averaging (4.233). Dividend Yield (0.031) settles around the average of (0.068) among similar stocks. P/S Ratio (2.318) is also within normal values, averaging (26.109).
The Tickeron PE Growth Rating for this company is 57 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating fairly steady price growth. STT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. STT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock worse than average.
Investment Managers manage financial assets and other investments of clients. Management includes designing a short- or long-term strategy for buying/holding and selling of portfolio holdings. It can also include tax services and other aspects of financial planning as well. While it is perceived that the industry is faced with growing competition from robo-advisors/digital platforms and passive/ index-tracking funds, many investors still find value in actively managed in-person services that investment management companies often emphasize on. At the same time, many wealth managers are also incorporating digital initiatives/low cost options in addition to their in-person customized services. Their main sources of revenues are fees as a percentage of assets under management, in addition to a certain portion of clients’ gains from asset appreciation. BlackRock, Inc., Blackstone Group Inc and Brookfield Asset Management are some of the major investment management companies.
The average market capitalization across the Investment Managers Industry is 4.2B. The market cap for tickers in the group ranges from 372 to 94.9B. BLK holds the highest valuation in this group at 94.9B. The lowest valued company is NVPLF at 372.
The average weekly price growth across all stocks in the Investment Managers Industry was 0.25%. For the same Industry, the average monthly price growth was -5.76%, and the average quarterly price growth was 215.57%. TLGN experienced the highest price growth at 191.04%, while CHAM experienced the biggest fall at -52.11%.
- 5/5/22 4:57 AM: State Street (STT, $72.76) was a top weekly gainer, with a +8.82% jump
- 4/6/22 8:51 AM: State Street (STT, $85.31) was a top loser this week, declining -6.66%
- 3/31/22 6:39 AM: State Street (STT, $92.11) was a top weekly gainer, with a +5.29% jump
The average weekly volume growth across all stocks in the Investment Managers Industry was 51.89%. For the same stocks of the Industry, the average monthly volume growth was 39.67% and the average quarterly volume growth was 179.74%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Positive Outlook today, backed by the RSI Indicator. Tickeron has a positive outlook on this group and predicts a further increase by more than 4.00% within the next month with a likelihood of 58%. During the last month, the daily ratio of advancing to declining volumes was 2 to 1.
4 stocks in the group of tickers exhibit a similar positive trend based on the BollingerBands indicator with an average likelihood of 72%.
The average market capitalization across the group is 4.1B. The market cap for tickers in the group ranges from 166.5M to 11.2B. BAP holds the highest valuation in this group at 11.2B. The lowest valued company is ESSA at 166.5M.
The average weekly price growth across all stocks in the group was 5.01%. For the same group, the average monthly price growth was 0.09%, and the average quarterly price growth was 8.25%. CIB experienced the highest price growth at 13.32%, while ESSA experienced the biggest fall at -0.44%.
- 4/22/22 6:39 AM: Credi (BAP, $153.84) was a top weekly gainer, with a +6.24% jump
- 4/9/22 5:29 AM: Credi (BAP, $146.29) was a top loser this week, declining -14.2%
The average weekly volume growth across all stocks in the group was -14.01%. For the same stocks of the group, the average monthly volume growth was -20.19% and the average quarterly volume growth was 115.27%
- 5/17/22 6:45 AM: The volume for Berkshire Hills Ban stock increased for one day, resulting in a record-breaking daily growth of 422% of the 65-Day Volume Moving Average
- 4/22/22 6:33 AM: The volume for Credi stock increased for one day, resulting in a record-breaking daily growth of 208% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
The most notable companies in this group are US Bancorp (NYSE:USB), PNC Financial Services Group (NYSE:PNC), Itau Unibanco Holding SA (NYSE:ITUB), Banco Bradesco SA (NYSE:BBD), Deutsche Bank Aktiengesellschaft (NYSE:DB), Regions Financial Corp (NYSE:RF), Huntington Bancshares (NASDAQ:HBAN), KeyCorp (NYSE:KEY), Veritex Holdings (NASDAQ:VBTX).
Regional banks have a smaller reach than major banks, and cater mostly to one region of a country, such as a state or within a group of states. They offer services often similar – albeit with some limitations/smaller scale – compared to major banks. Taking deposits, making loans, mortgages, leases, credit cards , fund management, insurance and investment banking. SunTrust Banks, State Street Corp., M&T Bank Corp. are some examples of U.S. regional banks.
The average market capitalization across the Regional Banks Industry is 5.1B. The market cap for tickers in the group ranges from 10.7K to 146.6B. CIHKY holds the highest valuation in this group at 146.6B. The lowest valued company is ACBCQ at 10.7K.
The average weekly price growth across all stocks in the Regional Banks Industry was 1.58%. For the same Industry, the average monthly price growth was -1.54%, and the average quarterly price growth was -1.5%. GPFOF experienced the highest price growth at 71.17%, while ACFL experienced the biggest fall at -80%.
- 4/22/22 6:39 AM: Credi (BAP, $153.84) was a top weekly gainer, with a +6.24% jump
- 4/9/22 5:29 AM: Credi (BAP, $146.29) was a top loser this week, declining -14.2%
The average weekly volume growth across all stocks in the Regional Banks Industry was -21.83%. For the same stocks of the Industry, the average monthly volume growth was -25.64% and the average quarterly volume growth was 23.69%
- 5/17/22 6:45 AM: The volume for Berkshire Hills Ban stock increased for one day, resulting in a record-breaking daily growth of 422% of the 65-Day Volume Moving Average
- 4/22/22 6:33 AM: The volume for Credi stock increased for one day, resulting in a record-breaking daily growth of 208% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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