Do Wall Street Analysts Like Fifth Third Bancorp Stock?

European equities traded in the US as American depositary receipts were moving higher late Monday morning, rising 0.35% to 1,339.76 on the S&P Europe Select ADR Index.

From continental Europe, the gainers were led by internet browser company Opera and pharmaceutical company Ascendis Pharma , which rose 4.8% and 3.3% respectively. They were followed by pharmaceutical company Novo Nordisk and internet advertising firm Criteo , which were up 2.9% and 2% respectively.

The decliners from continental Europe were led by accommodations booking company trivago and biotech firm Evaxion Biotech , which fell 2.4% and 1.8% respectively. They were followed by medical device maker Edap and telecommunications operator Telefonica , which were down 1.7% and 1.6% respectively.

From the UK and Ireland, the gainers were led by biopharmaceutical companies NuCana and Akari Therapeutics , which climbed 6.3% and 5.2% respectively. They were followed by financial services company Barclays and software firm Endava , which increased 3.6% and 2.7% respectively.

The decliners from the UK and Ireland were led by biopharmaceutical company TC Biopharm and biotech firm Trinity Biotech , which lost 5.9% and 3.7% respectively. They were followed by mining company BHP Group and biopharmaceutical company Amarin , which were off 2.8% and 2.1% respectively.

Houston-based Crown Castle Inc. is a top-tier real estate investment trust (REIT) focused on cell towers and fiber network infrastructure. With a market cap of $46 billion, Crown Castle manages an extensive portfolio of over 40,000 cell towers and approximately 90,000 route miles of fiber, delivering small-cell and fiber solutions across all major U.S. markets.

Shares of the leading REIT have underperformed the broader market over the past year. CCI has gained 9.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 36.8%. In 2024, CCI stock is down 8.1%, compared to the SPX’s 25.7% returns on a YTD basis.

Narrowing the focus, CCI has also lagged behind the Real Estate Select Sector SPDR Fund over the past year. The exchange-traded fund has gained 27.1% over the past year and 9.6% in 2024.

Altria Group, Inc. , headquartered in Richmond, Virginia, manufactures and sells smokeable and oral tobacco products. Valued at $91.6 billion by market cap, the company offers cigarettes primarily under the Marlboro brand, large cigars and pipe tobacco under the Black & Mild brand, moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands, and more.

Shares of this leading tobacco company have underperformed the broader market over the past year. MO has gained 34.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 36.8%. However, in 2024, MO stock is up 34%, surpassing the SPX’s 25.7% rise on a YTD basis.

Narrowing the focus, MO’s outperformance is apparent compared to the Consumer Staples Select Sector SPDR Fund .The exchange-traded fund has gained about 17.5% over the past year. Moreover, MO’s returns on a YTD basis outshine the ETF’s 12.2% returns over the same time frame.

The Coca-Cola Company , headquartered in Atlanta, Georgia, is a beverage company that manufactures, markets, and sells various nonalcoholic beverages worldwide. With a market cap of $275.4 billion, the company also distributes and markets juice and juice-drink products to retailers and wholesalers worldwide.

Shares of this beverage giant have underperformed the broader market over the past year. KO has gained 12% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 36.8%. In 2024, KO stock is up 8.5%, compared to the SPX’s 25.7% rise on a YTD basis.

Narrowing the focus, KO’s outperformance is apparent compared to the First Trust Nasdaq Food & Beverage ETF . The exchange-traded fund has gained about 4.6% over the past year. Moreover, KO’s returns on a YTD basis outshine the ETF’s marginal losses over the same time frame.

Saint Paul, Minnesota-based 3M Company is a diversified conglomerate, operating in the fields of industry, worker safety, and consumer goods. With a market cap of $72.5 billion, 3M produces over 60,000 products under several brands, including adhesives, passive fire protection, window films, electronics, car-care products, and more.

3M has outperformed the broader market by a large margin over the past year. 3M stock have soared 46.1% on a YTD basis and 71.4% over the past 52 weeks, outpacing the S&P 500 Index’s ($SPX) 25.2% gains on a YTD basis and 36.4% returns over the past 52-week period.

Narrowing the focus, 3M has also outpaced the Industrial Select Sector SPDR Fund’s gains of 23.3% on a YTD basis and 39.1% over the past year.

BlackRock Inc. BLK is negotiating with Millennium Management to acquire a minority stake in the hedge fund, according to people familiar with the matter. This was first reported by The Financial Times.

Millennium, one of the world’s leading hedge funds, was founded by Israel Englander in 1989 and currently manages roughly $70 billion in assets.

The discussions between BLK and Millennium are in the initial phase and may not lead to a finalization of the deal.

Reasons Behind BLK’s Pursuit

This move aligns with BlackRock’s pursuit of becoming a one-stop shop for its investors through various offerings, including stocks, bonds, private strategies and financial consulting for strategic and governmental clients, boosting its revenues and profits.

BlackRock, the world’s largest asset manager, has been trying to expand into profitable alternatives assets investment as these generate more fees compared with traditional ones. Hence, the company has been expanding aggressively into this asset class. Last month, it acquired Global Infrastructure Partners, creating an industry leader in infrastructure.

Moreover, this September, BLK collaborated with Partners Group to introduce a multi-private markets model solution, boosting retail investors’ accessibility to alternative investments. Further, this June, the company agreed to acquire Preqin, a premier provider of private markets data, to enhance its private markets capabilities.

Recently, it was reported that BLK is in talks to acquire HPS Investment Partners. HPS, which manages more than $100 billion and is one of the largest independent managers in the private credit market.

BlackRock’s Zacks Rank & Price Performance

Year to date, shares of BlackRock have gained 27.6% compared with the industry’s 39.4% growth.

Currently, BLK sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Acquisitions Pursued by Other Finance Firms

Earlier this month, The Bank of New York Mellon Corporation BK acquired Archer Holdco, LLC, a leading technology-enabled service provider of managed account solutions to the asset and wealth management industry. The financial terms of the deal, announced on Sept. 5, were kept under wraps.

Archer’s clients will gain access to fully integrated solutions covering the entire managed account lifecycle, benefiting from the broader capabilities of the BNY enterprise. This deal uniquely positions BK as the leading service provider, aiding asset managers across all fund types for institutional and retail investors.

Similarly, Barclays PLC BCS completed the acquisition of the retail banking business of Tesco Personal Finance plc. The deal was announced in February.

The deal is anticipated to result in the recognition of an estimated pre-tax profit of £0.3 billion in the fourth quarter of 2024, generating a 50-basis point accretion for 2024 group return on tangible equity for BCS.

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