Core Viewpoint - Northern Trust Corporation (NTRS) is identified as a strong momentum stock with a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating potential for significant near-term price appreciation [2][3][11]. Company Performance - NTRS shares have increased by 2.1% over the past week, outperforming the Zacks Banks - Major Regional industry, which rose by 0.96% during the same period [5]. - Over the last quarter, NTRS shares have risen by 15.51%, and over the past year, they have increased by 34%, while the S&P 500 has only moved 2.92% and 14.29%, respectively [6]. - The average 20-day trading volume for NTRS is 852,398 shares, which is a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - In the past two months, 7 earnings estimates for NTRS have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $9.36 to $9.79 [9]. - For the next fiscal year, 4 estimates have also moved upwards, with no downward revisions noted [9].

Core Viewpoint - Northern Trust Corporation will participate in the BofA Securities 2026 Financial Services Conference, highlighting its ongoing engagement with the financial services community [1]. Company Overview - Northern Trust Corporation is a prominent provider of wealth management, asset servicing, asset management, and banking services, catering to corporations, institutions, affluent families, and individuals [3]. - The company was founded in Chicago in 1889 and has a global presence with offices in 24 U.S. states, Washington, D.C., and 22 locations across Canada, Europe, the Middle East, and the Asia-Pacific region [3]. - As of December 31, 2025, Northern Trust had assets under custody/administration amounting to US$18.7 trillion and assets under management totaling US$1.8 trillion [3]. - Northern Trust has established a reputation for exceptional service, financial expertise, integrity, and innovation over its 135 years of operation [3].

Core Insights - Northern Trust Corporation is a significant player in the financial services sector, providing a variety of services such as asset servicing, fund administration, investment management, and banking solutions, with a global reach targeting corporations, institutions, and affluent individuals [1] Financial Efficiency Analysis - Northern Trust's Return on Invested Capital (ROIC) stands at 6.78%, while its Weighted Average Cost of Capital (WACC) is 19.12%, resulting in a ROIC to WACC ratio of 0.35, indicating that the company is not generating returns above its cost of capital [2] - In comparison, State Street Corporation has a ROIC of 63.17% and a WACC of 15.35%, leading to a ROIC to WACC ratio of 4.12, showcasing its superior efficiency in generating returns well above its cost of capital [3] - Comerica Incorporated reports a ROIC of 3.40% and a WACC of 12.35%, yielding a ROIC to WACC ratio of 0.28, similar to Northern Trust, indicating challenges in capital utilization [4] - M&T Bank Corporation and Zions Bancorporation have ROIC to WACC ratios of 0.60 and 0.26, respectively, with M&T Bank showing a more favorable balance compared to Northern Trust, while Zions faces similar efficiency challenges [5] - Marsh & McLennan Companies has a ROIC to WACC ratio of 1.84, demonstrating a strong ability to generate returns above its cost of capital, though not as high as State Street [5]

Core Insights - Northern Trust Corp (NASDAQ:NTRS) is a prominent financial services company specializing in asset management, asset servicing, and wealth management, competing with firms like State Street and BNY Mellon [1] Financial Performance - In Q4 2025, Northern Trust reported a 9% increase in overall revenue, with trust fees rising by 7% and net interest income increasing by 14% to $654 million [2] - The company's earnings per share (EPS) experienced a significant 19% increase, and the pretax margin expanded to 33% [2][5] Shareholder Returns - Northern Trust returned $1.9 billion to shareholders in 2025, which included a record $1.3 billion in share repurchases, resulting in a 5% reduction in share count [3][5] Asset Management Performance - The asset management division achieved 12 consecutive quarters of positive flows, with liquidity assets under management (AUM) reaching nearly $340 billion [3] Stock Performance - The current stock price of NTRS is approximately $148.84, reflecting a decrease of about 2.80% or $4.28, with a market capitalization of approximately $28.15 billion [4] - Over the past year, the stock has fluctuated between a high of $157.60 and a low of $81.62 [4] Price Target - RBC Capital has set a new price target of $159 for NTRS, indicating a potential 6.79% increase from its current trading price [1][5]

Core Viewpoint - Income investors prioritize generating consistent cash flow from investments, with dividends being a key focus for this cash flow generation [2]. Company Overview - Northern Trust Corporation (NTRS), headquartered in Chicago, has experienced a price change of 12.1% this year [3]. - The company currently pays a dividend of $0.80 per share, resulting in a dividend yield of 2.09%, which is lower than the Banks - Major Regional industry's yield of 2.96% and the S&P 500's yield of 1.35% [3]. Dividend Analysis - The annualized dividend of Northern Trust is $3.20, reflecting a 3.2% increase from the previous year [4]. - Over the past five years, the company has increased its dividend once on a year-over-year basis, with an average annual increase of 2.01% [4]. - The current payout ratio is 37%, indicating that the company paid out 37% of its trailing 12-month earnings per share as dividends [4]. Earnings Growth Expectations - Northern Trust is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2026 at $9.58 per share, representing a year-over-year growth rate of 6.33% [5]. Investment Considerations - NTRS is considered a compelling investment opportunity due to its strong dividend profile, despite the general trend of high-yielding stocks struggling during periods of rising interest rates [6]. - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [6].

Core Viewpoint - The article compares U.S. Bancorp (USB) and Northern Trust Corporation (NTRS) to determine which stock is more attractive to value investors, highlighting USB's stronger earnings outlook and better valuation metrics [1][3]. Valuation Metrics - USB has a forward P/E ratio of 11.22, while NTRS has a forward P/E of 15.99, indicating that USB may be undervalued compared to NTRS [5]. - USB's PEG ratio is 1.01, compared to NTRS's PEG ratio of 1.27, suggesting USB has a more favorable growth outlook relative to its price [5]. - USB's P/B ratio is 1.48, while NTRS has a P/B of 2.4, further indicating USB's relative undervaluation [6]. Investment Ratings - USB currently holds a Zacks Rank of 2 (Buy), while NTRS has a Zacks Rank of 3 (Hold), suggesting a stronger investment case for USB [3]. - USB has been assigned a Value grade of B, whereas NTRS has a Value grade of C, reinforcing USB's position as the more attractive option for value investors [6].

Core Viewpoint - Northern Trust Corp reported better-than-expected earnings for the fourth quarter, with adjusted EPS of $2.69 surpassing market estimates of $2.37 and sales of $2.123 billion exceeding expectations of $2.058 billion [1] Group 1: Earnings Performance - The adjusted EPS for Northern Trust was $2.69, which is higher than the market estimate of $2.37 [1] - The company's sales reached $2.123 billion, compared to the expected $2.058 billion [1] - Following the earnings announcement, Northern Trust shares fell by 2.4% to $149.24 [1] Group 2: Analyst Ratings and Price Targets - Evercore ISI Group analyst Glenn Schorr maintained an In-Line rating and raised the price target from $142 to $155 [2] - Wells Fargo analyst Mike Mayo maintained an Equal-Weight rating and increased the price target from $145 to $150 [2] - RBC Capital analyst Gerard Cassidy maintained an Outperform rating and raised the price target from $139 to $159 [2]

Core Viewpoint - Northern Trust Corp reported better-than-expected earnings for the fourth quarter, with adjusted EPS of $2.69 surpassing market estimates of $2.37 and sales of $2.123 billion exceeding expectations of $2.058 billion [1] Group 1: Earnings Performance - The adjusted EPS for Northern Trust was $2.69, which is higher than the market estimate of $2.37 [1] - The company's sales reached $2.123 billion, compared to the expected $2.058 billion [1] - Following the earnings announcement, Northern Trust shares fell by 2.4% to $149.24 [1] Group 2: Analyst Ratings and Price Targets - Evercore ISI Group analyst Glenn Schorr maintained an In-Line rating and raised the price target from $142 to $155 [2] - Wells Fargo analyst Mike Mayo maintained an Equal-Weight rating and increased the price target from $145 to $150 [2] - RBC Capital analyst Gerard Cassidy maintained an Outperform rating and raised the price target from $139 to $159 [2]

Core Viewpoint - Northern Trust Corporation demonstrates strong financial performance, consistently surpassing earnings estimates and showcasing solid revenue growth, indicating a favorable market perception and financial stability. Financial Performance - On January 22, 2026, Northern Trust reported earnings per share (EPS) of $2.42, exceeding the estimated $2.37, continuing a trend of outperforming consensus EPS estimates over the past four quarters [2] - The company reported approximately $2.14 billion in revenue, surpassing the estimated $2.06 billion, and marking an increase from $1.96 billion reported in the same period the previous year [3] Market Valuation - Northern Trust's price-to-earnings (P/E) ratio is approximately 16.85, with a price-to-sales ratio of about 2.01, indicating a favorable market perception of its revenue [4] - The enterprise value to sales ratio is around 1.80, and the enterprise value to operating cash flow ratio is approximately 10.31, further supporting the positive market outlook [4] Financial Stability - The company maintains a low debt-to-equity ratio of 0.29, reflecting conservative debt usage [5] - Northern Trust's earnings yield is about 5.94%, indicating strong earnings generation from each dollar invested in the company's stock [5]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]