State Street Stock Price and Research (NYSE: STT)
State Street (NYSE: STT) is a $37 billion company today. Investors that bought shares one year ago are sitting on a 26.94% total return. That's above the S&P 500's return of 13.13%.
State Street stock is beating the market, and it reports earnings soon. But does that make it a good buy today? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✗ Earnings-per-Share (EPS) Growth: State Street reported a recent EPS growth rate of -37.24%. That's below the capital markets industry average of 68.86%. That's not a good sign. We like to see companies that have higher earnings growth.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the capital markets industry is 24.1. And State Street's ratio comes in at 15.24. It's trading at a better value than many of its competitors.
✓ Debt-to-Equity : The debt-to-equity ratio for State Street stock is 69.93%. That's below the capital markets industry average of 188.10%. That's a good sign. State Street's debt levels are not out of control.
✓ Free Cash Flow per Share Growth : State Street has increased its FCF per share over the last year relative to its competitors. That's good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✗ Profit Margins : The profit margin of State Street comes in at 13% today. And generally, the higher, the better. We also like to see this ratio above competitors. State Street's profit margin is below the capital markets average of 30.83%. So that's a negative indicator for investors.
✗ Return on Equity : Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for State Street is 10.76% and that's below its industry average ROE of 20.99%.
State Street stock passes three of our six key metrics today. That's why our Investment U Stock Grader gives it a Hold.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.
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