Will Intercontinental Exchange (ICE) be Able to Sustain Above-Average Earnings Growth?

Sands Capital, an investment management company, released its “Sands Capital Global Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global Growth adopts a flexible approach to identify the most promising growth companies worldwide. Global equities outperformed the MSCI ACWI in the quarter. The portfolio returned 21.7% in the quarter compared to 11.5% for the index. The second quarter results were the fourth best in both absolute and relative terms since its 2008 inception. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its second-quarter 2025 investor letter, Sands Capital Global Growth Strategy highlighted stocks such as Intercontinental Exchange, Inc. (NYSE:ICE). Intercontinental Exchange, Inc. (NYSE:ICE) is a financial services company that offers market infrastructure, data services, and technology solutions for financial institutions, corporations, and government entities. The one-month return of Intercontinental Exchange, Inc. (NYSE:ICE) was -5.46%, and its shares gained 6.31% of their value over the last 52 weeks. On September 16, 2025, Intercontinental Exchange, Inc. (NYSE:ICE) stock closed at $171.40 per share, with a market capitalization of $98.113 billion.

Sands Capital Global Growth Strategy stated the following regarding Intercontinental Exchange, Inc. (NYSE:ICE) in its second quarter 2025 investor letter:

"In the second quarter Global Growth completed the purchases of Carlisle Companies, Intercontinental Exchange, Inc. (NYSE:ICE), On Holding, and Pro Medicus. Intercontinental Exchange (ICE) is one of the world’s largest operators of financial exchanges and clearinghouses. ICE develops proprietary, non-fungible contacts for derivatives and integrates execution and clearing. The company originally focused on futures contracts for power but has since diversified into contracts for crude oil and gas, agricultural commodities, interest rates, equity indexes, foreign exchange rates, and credit default swaps. ICE also monetizes the security pricing and trading data from its exchanges as well as interconnection for trading houses looking to participate. Lastly, through a series of mergers and acquisitions, ICE has developed the first fully integrated, end-to-end platform for mortgage origination, closing, and servicing. This business also contains a range of datasets that can be cross-sold to financial service companies participating in the mortgage finance business. We expect ICE to sustain above-average earnings growth through a combination of organic growth across all three business lines (exchanges, fixed income and data services, and ICE mortgage technology), margin expansion, capital returns, and strategic M&A."

Intercontinental Exchange, Inc. (NYSE:ICE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 84 hedge fund portfolios held Intercontinental Exchange, Inc. (NYSE:ICE) at the end of the second quarter, compared to 94 in the previous quarter. While we acknowledge the potential of Intercontinental Exchange, Inc. (NYSE:ICE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Intercontinental Exchange, Inc. (NYSE:ICE) and shared the list of stocks Jim Cramer shed light on. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.