State Street Corporation (STT) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of State Street Corporation (STT)? Shares have been on the move with the stock up 4.8% over the past month. The stock hit a new 52-week high of $120.4 in the previous session. State Street has gained 22% since the start of the year compared to the 14.1% gain for the Zacks Finance sector and the 10.6% return for the Zacks Banks - Major Regional industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 17, 2025, State Street reported EPS of $2.78 versus consensus estimate of $2.62 while it beat the consensus revenue estimate by 2.2%.For the current fiscal year, State Street is expected to post earnings of $10.17 per share on $13.86 in revenues. This represents a 17.3% change in EPS on a 5.97% change in revenues. For the next fiscal year, the company is expected to earn $11.36 per share on $14.51 in revenues. This represents a year-over-year change of 11.68% and 4.7%, respectively.Valuation MetricsThough State Street has recently hit a 52-week high, what is next for State Street? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.State Street has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 11.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.2X. On a trailing cash flow basis, the stock currently trades at 10.2X versus its peer group's average of 10.6X. Additionally, the stock has a PEG ratio of 1.26. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, State Street currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if State Street passes the test. Thus, it seems as though State Street shares could have a bit more room to run in the near term.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report State Street Corporation (STT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks