Nasdaq (NDAQ) shares rallied 8.4% in the last trading session to close at $71.99. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.2% loss over the past four weeks.
The surge in price reflects investors' optimism on the announcement of a 90-day pause on tariffs imposed by President Trump on most countries, though a 10% tariff stays in place. Major stock exchanges witnessed surge yesterday given market volatility.
Nasdaq’s growth strategy focuses on generating more revenues from high-growth Market Technology and Investment Intelligence segments, forward R&D spending on higher-growth products, expansion of its Anti-Financial Crime clientele and innovations.
Nasdaq has an impressive inorganic story, providing it with direct access to the Canadian equities market, expanding its technology offerings, and enhancing its market surveillance techniques.
Nasdaq noted that the anti-fin crime space has a total addressable market of $12.5 billion. With Verafin under its portfolio, NDAQ established itself as a reg tech leadership to create a global SaaS leader. Nasdaq aims to achieve 40-50% SaaS revenues as a percentage of total revenues this year.
This exchange operator is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of +20.6%. Revenues are expected to be $1.22 billion, up 9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Nasdaq, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NDAQ going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Nasdaq is part of the Zacks Securities and Exchanges industry. CBOE Global (CBOE), another stock in the same industry, closed the last trading session 1.1% lower at $205.81. CBOE has returned -1.4% in the past month.
CBOE's consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $2.20. Compared to the company's year-ago EPS, this represents a change of +2.3%. CBOE currently boasts a Zacks Rank of #3 (Hold).
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Nasdaq, Inc. (NDAQ): Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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