10 Cheap Asset Management Stocks to Buy Now

8. Northern Trust Corporation (NASDAQ:NTRS)

Forward P/E: 12.3

Upside Potential: 18%

Number of Hedge Fund Holders: 42

Northern Trust Corporation (NASDAQ:NTRS) is a financial holding company that operates through its subsidiaries, including The Northern Trust Company (Bank). It offers wealth management, asset servicing, asset management, and banking solutions to corporations, institutions, families, and individuals.

Ranked among the top 20 global asset managers, the company managed approximately $1.6 trillion in assets under management (AUM) as of December 2024. In Q4 2024, Northern Trust reported a significant improvement in its return on average common equity, which rose to 15.3% for the quarter and 17.4% for FY 2024, compared to 10% in 2023.

On March 10, BofA analyst Ebrahim Poonawala maintained his Buy rating on Northern Trust Corporation (NASDAQ:NTRS) but lowered the price target to $123 from $130. This adjustment reflects a broader reduction in price targets across the banking sector, averaging 6%, due to slowing growth and higher capital costs. While acknowledging risks of a possible recession, driven by declining equity markets and the associated “negative wealth effect,” the analyst emphasized that a recession is not their base-case scenario. Moreover, the analyst suggested that if the U.S. economy stabilizes and transitions into a period of stronger growth, it would be advantageous to increase exposure to leading banking institutions.