State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services. As of this writing, the stock has a consensus rating of “Buy” according to MarketBeat.com. The company last announced its quarterly earnings results on October 22, 2020, which beat analysts' consensus estimates by $0.01. The company reported $1.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.53 by $0.01. The firm had revenue of $2.93 billion for the quarter, compared to the consensus estimate of $2.91 billion.
State Street Corporation (NYSE:STT) struck me as a good comparable due to its size, market capitalization, and similar sector. The company recently announced a new share repurchase program, under which it will repurchase up to $1 billion of its common stock through the end of 2021. The new program will offer eligible investors in certain institutional funds in the US and the UK a range of voting policies that will be designed to enhance the voting power of such investors. This gives investors the ability to have a greater say in the direction of the company.
We are expecting that the equity market performance will remain range bound in 2021, as the global economic recovery is expected to be gradual. The strong macroeconomic fundamentals and strong focus make the Indian stock market relatively stable and stronger. This certainly applies to State Street Corporation (NYSE:STT). This high-quality financial services stock has rallied 33% off its bottom in March 2020. The stock has gained more than 50% in the last year, with a current price of around $82.
State Street Corporation (NYSE: STT) is one of the largest asset managers in the world, managing over $3 trillion of assets. The company has been able to weather the pandemic-induced economic downturn better than most other financial services companies. After a few years of mediocre financial performance, STT's stock has seen a resurgence in the last year, with the stock up more than 50% from its previous year low.
State Street Corporation reported better-than-expected results in the third quarter of 2020, due to its strong revenue growth and solid earnings performance. Also, the company's plan to repurchase shares worth $1 billion in the fourth quarter cheered investors. Results reflected new investment management business growth, which helped offset the impact of lower interest rates and the pandemic-related market volatility.
State Street Corporation (NYSE:STT) stock is about to trade ex-dividend on December 4, 2020. investors who purchase shares on or after the ex-dividend date will not receive the dividend, which will be paid on January 8, 2021. Dividends are a major contributor to investment returns for long term investors, as they provide a steady income stream even when the stock price does not increase.
State Street Corporation's fourth-quarter earnings report is due on January 20, 2021. Analysts are expecting the company to report earnings per share of $1.62. This would represent a year-over-year increase of 5.1%, compared to $1.54 reported in the same quarter last year. The company is expected to benefit from its strong asset management business, which is expected to remain robust in the fourth quarter.
Overall, State Street Corporation (NYSE: STT) is a great stock to buy and hold. The company's strong financials and growing business make it a great long-term investment. The company is expected to benefit from its strong asset management business and share repurchase program. With all of these factors in mind, we expect State Street Corporation to continue to outperform the market in the coming quarters.
