Why Northern Trust Corporation (NTRS) is a Top Growth Stock for the Long-Term

Northern Trust Corporation (NTRS) is identified as a top growth stock, carrying a Zacks #2 (Buy) Rank and B scores for both Growth and VGM Style. The company, a prominent provider of wealth management and banking solutions, is forecast to achieve 10.9% year-over-year earnings growth for the current fiscal year. This positive outlook is reinforced by five analyst upward revisions to fiscal 2025 earnings estimates in the last 60 days, pushing the Zacks Consensus Estimate to $8.54 per share, alongside an average earnings surprise of +7.6%.

Analysis

Northern Trust Corporation (NTRS) presents a compelling growth profile according to the provided analysis, which is underpinned by positive forward-looking indicators and strong proprietary ratings. The company holds a Zacks #2 (Buy) rank, complemented by 'B' scores for both its overall VGM and specific Growth styles. The fundamental driver for this positive outlook is a forecasted year-over-year earnings growth of 10.9% for the current fiscal year. This sentiment is further reinforced by recent analyst activity for fiscal 2025, where five analysts have revised earnings estimates upward in the past 60 days. This has lifted the Zacks Consensus Estimate by $0.44 to $8.54 per share. Historically, NTRS has demonstrated an ability to outperform expectations, boasting an average positive earnings surprise of 7.6%, which adds a layer of credibility to its current growth projections.

Key Decisions for Investors

• Given the #2 (Buy) rating, a forecasted 10.9% earnings growth, and upwardly revised analyst estimates, growth-focused investors should consider NTRS a candidate for their watchlist or portfolio.
• The consistent history of positive earnings surprises, averaging +7.6%, suggests a potential for continued outperformance, which could serve as a catalyst around future earnings release dates.
• Investors should monitor whether the consensus earnings estimate for fiscal 2025 continues its upward trend, as this is a key driver of the current bullish thesis presented in the analysis.