ICE Stock Trades Above 50-Day SMA: What Should Investors Do?

Intercontinental Exchange Inc. ICE has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of Dec. 18, 2025, was $160.07, down 15.4% from its 52-week high of $189.35.

The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.

With a market capitalization of $91.62 billion, the average volume of shares traded in the last three months was 3.8 million.

ICE Shares are Affordable

Intercontinental shares are trading at a forward price-to-earnings of 21.42X, lower than the industry average of 24.1X. Its pricing, at a discount to the industry average, gives a better entry point to investors.

Price Performance of ICE

Shares of Intercontinental Exchange have gained 6.5% in the past year compared with the industry’s growth of 8.7%. 
Intercontinental has outperformed its peer, OTC Markets Group Inc. OTCM, which has lost 1.9% in the past year. Meanwhile, shares of CME Group Inc. CME and Nasdaq, Inc. NDAQ have gained 11.6% and 21.9%, respectively, in the past year.

ICE’s Growth Projection Encourages

The Zacks Consensus Estimate for Intercontinental Exchange’s 2025 earnings per share indicates a year-over-year increase of 13.6%. The consensus estimate for revenues is pegged at $9.88 billion, implying a year-over-year improvement of 6.4%. 
The consensus estimate for 2026 earnings per share and revenues indicates an increase of 8.5% and 5.8%, respectively, from the corresponding 2025 estimates.

Average Target Price for ICE Suggests Upside

Based on short-term price targets offered by 18 analysts, the Zacks average price target is $191.07 per share. The average suggests a potential 18.7% upside from the last closing price.

Factors Acting in Favor of ICE Stock

ICE’s top line is poised to improve on strength in global data services and index business, growth in pricing and reference data business, and strength in ICE Global Network offering, solid desktop, feeds, and derivatives analytics. The company has been achieving expense synergies from strategic acquisitions, which have also strengthened its portfolio and expanded its presence.

ICE boasts the largest mortgage network across the United States and thus remains well-positioned to benefit from accelerated digitization in the residential mortgage industry.

Continued adoption of digital solutions, MSP mortgage servicing system revenues and default management revenues are expected to drive Mortgage Technology’s revenues. In the fourth quarter of 2025, ICE expects revenues of Mortgage Technology to remain at the level of the third quarter of 2025, primarily driven by Mr. Cooper's acquisition of Flagstar and customers resetting their minimums on Encompass. ICE expects these items to largely be offset by revenues from new customers coming online. For 2025, the company expects total revenue growth in the Mortgage Technology revenues in the low-to-mid single digits.

ICE continuously engages in strategic investments supported by a healthy and minimal risk-based balance sheet, which also offers stability and buoyancy over the medium to long term.

Risks for ICE

However, operating expenses have been increasing over the last several years, weighing on margin expansion. With continuous growth initiatives like product launches and technology upgrades, we believe that expenses are likely to remain elevated in the near term.
Though the debt balance declined, its leverage, as well as times interest earned, compares unfavorably with the industry average.

Conclusion

ICE is poised for growth, banking on the strength of its compelling portfolio and expansive risk-management services, which also ensure revenue flow, as well as strategic buyouts, a solid balance sheet, and effective capital deployment. Its dividend history is impressive. It has more than doubled its dividends in the last six years.

Favorable growth estimates, as well as attractive valuations, should continue to benefit ICE over the long term.

It is, therefore, wise to hold on to this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research