NTRS

KeyCorp (KEY) is presented as a superior value opportunity compared to Northern Trust Corporation (NTRS) among major regional banks. KEY has a Zacks Rank of #2 (Buy) with improving earnings outlook, a lower forward P/E ratio of 11.41 versus NTRS's 14.15, and a Value grade of B compared to NTRS's F grade. KEY also shows better valuation metrics including a lower PEG ratio (0.76 vs 0.94) and P/B ratio (1.43 vs 2.43).

Northern Trust reported Q3 2026 revenue of $2.3 billion, up 13.4% year-over-year, beating consensus estimates by 1.4%. EPS of $3.20 significantly exceeded the $2.86 estimate by 11.89%.

Key metrics showed mixed results with Tier 1 Leverage Ratio slightly above estimates at 7.8%, while several servicing fee categories came in below analyst expectations. The stock has declined 4.6% over the past month but maintains a Zacks Rank #2 (Buy) rating.

Northern Trust reported Q3 2026 adjusted EPS of $3.20, beating estimates of $2.86 with 48% year-over-year growth. Revenues rose 13% to $2.29 billion driven by net interest income growth and increased servicing fees.

AUC and AUM grew 9% and 11% respectively, supported by client inflows and favorable markets. However, elevated expenses and credit loss provisions remain concerns.

Northern Trust is expected to report Q3 2026 earnings of $2.86 per share, up 24.9% year-over-year, driven by 11.4% growth in net interest income and 12.1% increase in total fee income. However, elevated compensation costs and technology investments may pressure results. The company has a strong earnings surprise history but the Zacks model does not conclusively predict a beat this quarter.

Northern Trust is expected to report Q3 2026 earnings of $2.86 per share (up 24.9% YoY) with revenues of $2.26 billion (up 11.8% YoY). However, with an Earnings ESP of 0% and Zacks Rank #3, the stock is not considered a compelling earnings-beat candidate. The company has a strong history of beating estimates in recent quarters.

Northern Trust Corporation (NTRS), a Chicago-based financial services company, is highlighted as an attractive dividend stock with a 2.09% yield and annualized dividend of $3.52, up 13.5% year-over-year. The company expects solid earnings growth of 29.30% for 2026 with a conservative 30% payout ratio, positioning it as a compelling income investment opportunity despite holding a Zacks Rank #3 (Hold) rating.

UBS has agreed to transfer its former Credit Suisse fund administration businesses in Switzerland and Luxembourg to Northern Trust Corporation. The transaction, expected to close in Q2 2027, is part of UBS's post-Credit Suisse integration simplification efforts. Northern Trust will gain recurring fee income and increased fund administration scale, while UBS will reduce operational complexity and focus on core businesses.

Truist Financial reported Q3 earnings of $1.16 per share, missing the consensus estimate of $1.17, and revenues of $5.19 billion, falling short of expectations by 2.19%. The stock has underperformed the S&P 500 by 18.5% year-to-date and carries a Zacks Rank #3 (Hold) rating. The company's industry, Banks - Major Regional, ranks in the bottom 33% of Zacks industries.