Strength Seen in Northern Trust (NTRS): Can Its 8.0% Jump Turn into More Strength?

Company Overview - Northern Trust Corporation (NTRS) shares increased by 8% to $120.81 in the last trading session, with a trading volume higher than average [1] - The stock has gained 5.7% over the past four weeks [1] Merger Speculation - The rise in Northern Trust's stock price was influenced by a Wall Street Journal report indicating that Bank of New York Mellon approached Northern Trust for a potential merger discussion [2] - Senior executives from both firms have held at least one meeting, although no specific terms or formal offers were discussed [2] - The early-stage talks have generated investor optimism and speculation about a possible deal, contributing to the stock's surge [2] Earnings Expectations - Northern Trust is expected to report quarterly earnings of $2.06 per share, reflecting a year-over-year increase of 15.7% [3] - Revenues are anticipated to be $1.97 billion, which is a decrease of 27.5% compared to the same quarter last year [3] Earnings Estimate Revisions - The consensus EPS estimate for Northern Trust has been revised 0.7% higher in the last 30 days [4] - A positive trend in earnings estimate revisions is typically associated with price appreciation, suggesting potential for further stock strength [4] Industry Context - Northern Trust is part of the Zacks Banks - Major Regional industry, which includes other companies like M&T Bank Corporation (MTB) [4] - M&T Bank's consensus EPS estimate has changed by +0.1% to $4.03, representing a 6.3% increase from the previous year [5] - M&T Bank also holds a Zacks Rank of 3 (Hold) [5]