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 - 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]

Dividend Announcements - Northern Trust Corporation has declared a quarterly cash dividend of $0.80 per share on its common stock, payable on January 1, 2026, to holders of record at 5:00 p.m. Chicago time on December 5, 2025 [1] - Additionally, a cash dividend of $293.75 per share of its Series E non-cumulative perpetual preferred stock has been declared, resulting in a distribution of $0.29375 per depository share, payable on January 1, 2026, to holders of record at 5:00 p.m. Chicago time on December 15, 2025 [2] Company Overview - Northern Trust Corporation is a leading provider of wealth management, asset servicing, asset management, and banking services to corporations, institutions, affluent families, and individuals [3] - Founded in Chicago in 1889, the company has a global presence with offices in 24 U.S. states and Washington, D.C., as well as 22 locations across Canada, Europe, the Middle East, and the Asia-Pacific region [3] - As of June 30, 2025, Northern Trust had assets under custody/administration of $18.1 trillion and assets under management of $1.7 trillion [3] - The company has earned distinction as an industry leader for exceptional service, financial expertise, integrity, and innovation over its 135-year history [3]

Group 1 - ClearBridge Investments released its second-quarter 2025 investor letter for the ClearBridge Small Cap Strategy, highlighting volatility in small-cap stocks and a 10% rebound in the Russell 2000 Index after a decline [1] - The Russell 2000 Index returned 8.5% for the quarter, underperforming the Russell 1000 Index, which returned 11.1% [1] - The strategy underperformed its benchmark during this period, indicating challenges in the small-cap sector [1] Group 2 - UMB Financial Corporation (NASDAQ:UMBF) was highlighted as a key stock, with a one-month return of 3.85% and a 14.75% increase over the last 52 weeks, closing at $120.39 per share with a market capitalization of $9.141 billion [2] - ClearBridge Small Cap Strategy actively adjusted its financial sector positioning by exiting Home BancShares for a new position in UMB Financial Corporation, citing superior quality and diversification [3] - UMB Financial Corporation was held by 28 hedge fund portfolios at the end of the second quarter, an increase from 25 in the previous quarter, although it is not among the 30 most popular stocks among hedge funds [4]

Core Insights - Zacks Premium offers various tools to enhance investor confidence and market engagement, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to complement the Zacks Rank, providing additional metrics to help investors identify stocks likely to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum, with A being the highest score indicating a better chance of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [5] - The Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points for investments [6] - The VGM Score combines the three Style Scores to highlight stocks with the best overall value, growth, and momentum characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7] - With over 800 top-rated stocks available, the Style Scores assist investors in narrowing down their choices [8] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the trend of earnings estimate revisions [9][10] Company Spotlight: Northern Trust Corporation - Northern Trust Corporation, based in Chicago, is a prominent provider of wealth management and banking solutions, serving a diverse clientele [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong potential for growth [11] - Northern Trust is projected to achieve a year-over-year earnings growth of 10.9% for the current fiscal year, with upward revisions in earnings estimates from analysts [12] - The company has an average earnings surprise of +7.6%, making it a compelling option for growth investors [12]