11 Most Undervalued Quality Stocks to Buy Now

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7. State Street Corp. (NYSE:STT)

Forward P/E Ratio as of April 14: 8.22

Number of Hedge Fund Holders: 61

State Street Corp. (NYSE:STT) provides financial products and services to institutional investors worldwide. It offers investment servicing products and services, such as custody, accounting & fund administration services, recordkeeping, client reporting, investor services operations outsourcing, financial data management, and other similar services and products.

The company’s Net Interest Income (NII) is a primary driver of its overall growth. The company expects deposit levels to remain between $230 and $240 billion as it enters the first quarter of 2025. While noninterest-bearing deposits rose slightly in Q4 2024, it’s down 12% when compared to the year-ago period. Loan growth also significantly fuels NII and reached 14% in 2024. This growth relies on lending to private market clients, which make up over two-thirds of the company’s total loans.

State Street Corp. (NYSE:STT) is now focused on growing its fee-based business. Its servicing fee sales have risen by 45% since 2022, and 250% since 2020, which came from restructuring the sales team and realigning incentives. The company expects to continue to reach its 2025 target of $350 to $400 million in servicing fee sales.

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