Is Northern Trust Stock Outperforming the Nasdaq?

Northern Trust Corporation (NTRS), headquartered in Chicago, Illinois, is a global leader in wealth management, asset servicing, and investment solutions. With a market cap of $20.5 billion and an excellent reputation, Northern Trust provides innovative financial services to corporations, institutions, and affluent individuals worldwide, focusing on trust, integrity, and expertise.

Companies with a market cap of $10 billion or more are classified as “large-cap stocks,” and Northern Trust Corporation fits this category. The company continues to strengthen its value proposition through its unwavering commitment to financial innovation, client-focused solutions, and operational excellence. Northern Trust transforms challenges into opportunities, empowering clients and driving progress toward a more secure and prosperous financial future.

Despite the strengths, shares of the asset management company have fallen 6.4% from its 52-week high of $111.87, hit on Nov. 29. Yet, the stock is up 16.4% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) 10.1% gain during the same time frame.

Over the past six months, NTRS rallied 26.7% and gained 24.2% over the past 52 weeks. In comparison, the NASX has climbed 12.4% over the last six months and 32.8% over the past year.

Northern Trust has consistently traded above its 50-day moving average since mid-August despite some recent fluctuations, indicating a bullish trend. Moreover, it has maintained a position above its 200-day moving average throughout the past year.

On Oct. 23, Northern Trust announced its Q3 earnings, driving a 7% surge in its shares. Revenue increased 13.6% year-over-year to $1.98 billion. The company reported EPS of $2.22, up from $1.49 in the same quarter of 2023. Net income climbed to $464.9 million, up from $327.8 million in the prior year quarter.

Highlighting the contrast in performance, NTRS’ competitor, Comerica Incorporated (CMA), has underperformed the stock. CMA has gained 11.2% over the past year.

Despite the stock's recent performance, analysts remain cautious about NTRS's outlook. Among the 14 analysts covering the stock, it has a consensus rating of "Hold" overall. The mean price target is $109.11, indicating a potential upside of 4.3% from its current level.