10 Cheap Asset Management Stocks to Buy Now

4. State Street Corp. (NYSE:STT)

Forward P/E: 9.3

Upside Potential: 21%

Number of Hedge Fund Holders: 61

State Street Corp. (NYSE:STT) ranks among the world’s largest custodian banks and asset servicing firms, offering investment management, fund administration, and risk analytics solutions. Through its investment arm, State Street Global Advisors (SSGA), the company oversees an extensive portfolio of index funds and ETFs, including the SPDR series.

In 2024, State Street Corp. (NYSE:STT) was one of the largest asset management firms globally, with US$4.7 trillion in assets under management and US$46.6 trillion in assets under custody and administration. Alongside BlackRock and Vanguard, State Street is considered one of the Big Three index fund managers dominating retail investing.

On March 6, Morgan Stanley analyst Betsy Graseck reaffirmed her Overweight rating on State Street Corp. (NYSE:STT) but reduced the price target from $142 to $139 due to revised EPS estimates for 2025 and 2026, driven by lower fees and higher preferred dividends. Just days earlier, the analyst had raised the price target to $142 following the company’s announcement of its acquisition of Mizuho’s global custody and related businesses outside Japan.

The analyst had expressed optimism about the acquisition, anticipating that it would bolster State Street Corp. (NYSE:STT)’s position in the consolidating custody industry by increasing its scale. The acquisition aligns with the firm’s broader strategy to expand its international reach and effectively deploy excess capital. Although relatively small in scope, the deal underscores the potential for further cross-border transactions, strengthening the company’s competitive stance in the evolving global custody market.