Shares of Northern Trust (NTRS) are down over 20% in the past twelve months, struggling to recapture much of their March losses. While Northern Trust doesn’t face the credit losses plaguing much of the banking sector, lower interest are a serious, and likely prolonged, headwind for its business. NTRS faces diminishing earnings power, and accordingly rather than being a value opportunity, NTRS is a value trap that investors should consider shorting.
(Source: Seeking Alpha)
Q2 Results Point to Problems Ahead
In the company’s second quarter (financials available here), Northern Trust earned