Are You Looking for a Top Momentum Pick? Why Northern Trust Corporation (NTRS) is a Great Choice

Zacks has identified Northern Trust Corporation (NTRS) as a top momentum pick, assigning it a Zacks Rank #2 (Buy) and a Momentum Style Score of B. This assessment is underpinned by NTRS's significant outperformance, with shares rising 15.71% quarterly and 46.67% annually, substantially exceeding the S&P 500's respective gains of 9.25% and 18.95%. Additionally, the company has experienced positive earnings estimate revisions, with the full-year consensus increasing from $8.34 to $8.54 over the past 60 days, reinforcing its potential for near-term gains according to Zacks' methodology.

Analysis

Northern Trust Corporation (NTRS) has been identified as a significant momentum stock, supported by a Zacks Rank of #2 (Buy) and a Momentum Style Score of B. The company's price performance has substantially outpaced broader market benchmarks, with shares rising 46.67% over the last year and 15.71% over the past quarter, compared to the S&P 500's gains of 18.95% and 9.25%, respectively. This technical strength is underpinned by positive fundamental trends, most notably in earnings estimate revisions. Over the past 60 days, the consensus earnings estimate for the current fiscal year has increased from $8.34 to $8.54, driven by four upward revisions against only one downward revision. Further reinforcing this positive outlook, estimates for the next fiscal year have seen three upward revisions and no downward revisions. While NTRS shares outperformed their industry over the past week (+1.69% vs. +0.65%), they lagged on a monthly basis (+2.7% vs. +4.74%), a point of data to consider within the broader bullish context.

Key Decisions for Investors

• Given the strong momentum indicators and positive earnings estimate revisions, investors employing a momentum strategy should consider NTRS for its potential near-term outperformance, in line with its Zacks #2 (Buy) rating.
• It is critical to monitor the trend in earnings estimate revisions, as the current upward trajectory is a key fundamental support for the stock's momentum and a core component of the bullish thesis.
• While long-term performance is strong, investors should note the recent monthly price underperformance relative to its industry and monitor short-term price action to ensure relative strength is sustained.