A Look at State Street’s (STT) Valuation Following Strong Q3 Results and Momentum

State Street (STT) delivered strong third quarter results, pointing to rising servicing and management fees, as well as seven straight quarters of positive operating leverage. Management is crediting business momentum and strategic execution for this performance.

See our latest analysis for State Street.

State Street’s upbeat third quarter and a string of recent moves—including a fresh $1 billion note issuance, steady share buybacks, and preferred dividend announcements—have helped keep momentum in the stock. With a 32.5% total shareholder return over the last year and the share price climbing over 18% year-to-date, investor confidence is clearly building as the company continues to demonstrate growth and resilience, especially in a rapidly changing market environment.

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So with State Street’s impressive rally and analysts projecting nearly 20% upside, is the stock still undervalued? Or has the recent momentum already priced in all future growth potential for investors?

Most Popular Narrative: 10% Undervalued

With the narrative placing State Street’s fair value at $129.63 versus a last close of $116.12, analysts see the market trailing well behind expectations. Here is a key insight driving that narrative and why many are taking 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. This is 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.

Read the complete narrative.

Wondering what powers this bullish outlook? One dramatic assumption about margin expansion is at the heart of the story. Uncover the bold projections and hidden formula shaping this valuation so you do not miss the full picture.

Result: Fair Value of $129.63 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, challenges such as fee compression in ETFs and disruptive settlement technologies could quickly change the outlook and test State Street’s resilience.

Find out about the key risks to this State Street narrative.

Build Your Own State Street Narrative

You do not have to accept the consensus or rely solely on analyst perspectives. In just a couple of minutes, you can dive into the fundamentals yourself and craft your own view. Do it your way

A great starting point for your State Street research is our analysis highlighting 5 key rewards and 2 important warning signs 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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