Northern Trust has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 10.9% to $144.88 per share while the index has gained 6.5%.

Is there a buying opportunity in Northern Trust, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free.

Why Is Northern Trust Not Exciting?

We don't have much confidence in Northern Trust. Here are two reasons there are better opportunities than NTRS and a stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years.

Over the last five years, Northern Trust grew its revenue at a tepid 5.8% compounded annual growth rate. This was below our standard for the financials sector.

2. EPS Barely Growing

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Northern Trust’s EPS grew at an unimpressive 9.3% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 5.8% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.

Final Judgment

Northern Trust isn’t a terrible business, but it doesn’t pass our bar. That said, the stock currently trades at 14.4× forward P/E (or $144.88 per share). Investors with a higher risk tolerance might like the company, but we think the potential downside is too great. We're fairly confident there are better stocks to buy right now. Let us point you toward a safe-and-steady industrials business benefiting from an upgrade cycle.

Stocks We Would Buy Instead of Northern Trust

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The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.