Portfolio: Zacks Deep Value Proxy

Northern Trust Corporation (NTRS) is a global financial services firm specializing in asset servicing, wealth management, and asset management, primarily serving institutional investors, corporations, and high-net-worth individuals. Its business model emphasizes stability, conservative risk management, and fee-based revenue, making it resilient to economic fluctuations.

The business is extremely efficient, turning a 25% net profit margin while steering the company towards growth. Rumors have been swirling about a possible merger with Bank of New York Mellon, which if true, would create a true juggernaut in custodian banking by unlocking synergies, cost savings, and enhanced scale in client relationships and operations.

At just a 14.5x forward P/E, the stock remains cheap in a favorable environment for banks overall.