Shares of Northern Trust Corporation (NTRS) achieved a new 52-week high of $70.92 in the last hour of the trading session on Feb 11. The stock closed at $70.58, reflecting an impressive return of 16.6% over the past one year. The trading volume for the session was 124,000 shares.
Despite the strong price appreciation, this Zacks Rank #2 (Buy) stock has plenty of upside left, given its sturdy estimate revisions over the last 30 days.
Growth Drivers
Northern Trust’s solid fourth-quarter and full-year 2014 results were the pivotal growth driver. Particularly efficient cost control, rise in assets under management and improved credit metrics, along with a strong capital position, were the driving forces.
Northern Trust reported results on Jan 21. Quarterly earnings of 94 cents represented a positive surprise of 16%. Moreover, full-year 2014 earnings of $3.41 per share silvered past the Zacks Consensus Estimate of $2.99 per share.
Additionally, Northern Trust was efficient with its capital deployment activities. The company repurchased 2.5 million shares for $165.5 million in the fourth quarter and a total of 7.5 million shares worth $480.7 million in 2014.
Estimate Revisions Show Strength
Over the last 30 days, 9 out of 10 estimates for 2015 have been revised upward, lifting the Zacks Consensus Estimate by roughly 2.5% to $3.71 per share. For 2016, the Zacks Consensus Estimate inched up 1.6% to $4.37 per share over the same time frame.
Some better-ranked finance stocks include Northwest Bancshares, Inc. (NWBI), Pinnacle Financial Partners Inc. (PNFP) and Southern First Bancshares, Inc. (SFST). All these stocks sport a Zacks Rank #1 (Strong Buy).
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