STT

State Street Corporation

Finance/Real Estate


Presented:04/04/2014
Price:$69.49
Cap:$30.00B
Current Price:$91.82
Cap:$27.42B

Presented

Date04/04/2014
Price$69.49
Market Cap$30.00B
Ent Value$0.00B
P/E Ratio15.93x
Book Value$46.99
Div Yield1.6%
Shares O/S431.64M
Ave Daily Vol2,880,000
Short Int0.85%

Current

Price$91.82
Market Cap$27.42B
State Street Corporation provides various financial services and products to institutional investors worldwide. The company offers investment servicing products and services, which include custody; product- and participant-level accounting; daily pricing and administration; master trust and master custody; record-keeping; cash management; foreign exchange, brokerage, and other trading services; securities finance; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; and performance, risk, and compliance analytics. The company’s investment management products and services include investment management, investment research, and investment advisory services; strategies for managing passive and active financial assets, such as enhanced indexing and fixed-income securities; and exchange-traded funds. It serves mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers. State Street Corporation was founded in 1832 and is headquartered in Boston, Massachusetts.

Highlights

Over the past year State Street (STT) has been a laggard relative to peers like BoNY Mellon and Northern Trust, as well as the financial sector and overall market, and for good reason. The year-to-date underperformance is even more pronounced, as the company has missed guidance and/or expectations over the past few quarters. However, the presenter believes the trust bank may be at – or very near - an inflection point, and investors could see better results as early as this quarter. Given his cautious optimism, the presenter has begun to establish a long position in shares of STT, and explained his bullish, somewhat contrarian thesis as follows:

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Idea Discussion

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