State Street Corporation (STT) has been upgraded to a Zacks Rank #1 (Strong Buy), driven by a 3.6% increase in its Zacks Consensus Estimate for fiscal year 2025 earnings per share over the past three months. This upgrade, placing STT in the top 5% of Zacks-covered stocks, signifies an improving earnings outlook that historically correlates with near-term stock price appreciation, often influenced by institutional investor activity.
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ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. What Makes State Street (STT) a New Strong Buy Stock Read MoreHide Full Article State Street Corporation (STT - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank 1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements. As such, the Zacks rating upgrade for State Street is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock. For State Street, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher. Harnessing the Power of Earnings Estimate Revisions Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks 1 Rank (Strong Buy) stocks here >>>> . Earnings Estimate Revisions for State Street For the fiscal year ending December 2025, this company is expected to earn $9.94 per share, which is unchanged compared with the year-ago reported number. Analysts have been steadily raising their estimates for State Street. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.6%. Bottom Line Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term. The upgrade of State Street to a Zacks Rank 1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Image: Bigstock What Makes State Street (STT) a New Strong Buy Stock State Street Corporation (STT - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank 1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements. As such, the Zacks rating upgrade for State Street is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.For State Street, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher. Harnessing the Power of Earnings Estimate Revisions Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks 1 Rank (Strong Buy) stocks here >>>> . Earnings Estimate Revisions for State Street For the fiscal year ending December 2025, this company is expected to earn $9.94 per share, which is unchanged compared with the year-ago reported number.Analysts have been steadily raising their estimates for State Street. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.6%. Bottom Line Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.You can learn more about the Zacks Rank here >>> The upgrade of State Street to a Zacks Rank 1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up State Street Corporation (STT) has received a significant positive signal through its upgrade to a Zacks Rank 1 (Strong Buy), placing it in the top 5% of the over 4,000 stocks covered by the quantitative rating system. This upgrade is not based on subjective analyst opinion but is a direct result of an upward trend in earnings estimates, which the Zacks model identifies as a strong predictor of near-term stock price movements. Specifically, the Zacks Consensus Estimate for STT has increased by 3.6% over the past three months, with the forecast for the fiscal year ending December 2025 now at $9.94 per share. This positive revision in the company's earnings outlook is a critical catalyst, as it can prompt institutional investors to adjust their valuation models, potentially leading to increased buying pressure and a favorable impact on the stock price. The strongly positive sentiment score of 0.8 reflects the bullish nature of this data-driven change in the company's fundamental outlook.
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Request a DemoOverall Sentiment
strongly positive
Sentiment Score
0.80
Ticker Sentiment
