OTC Markets Group Inc. (OTCM) shares rallied 6.1% in the last trading session to close at $60.5. 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 11.8% gain over the past four weeks.
The company continues to benefit from growth in OTC Link revenues driven by growing trading volumes across each market and an increase in market data licensing.
Its priorities for 2025 remain overnight trading and the launch of the OTCID Basic Market. While overnight trading gives access to thousands of exchange-listed and OTC securities during Asian market hours, at European market open and Overnight in the U.S. while OTCID Basic Market will expand offering to a wider range of companies. These growth initiatives will give competitive edge to the company.
The company remains focused on growing business by optimizing usage of shareholder capital and delivering long-term value to them.
This company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +10.7%. Revenues are expected to be $29.78 million, up 8.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For OTC Markets Group, 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 OTCM 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 >>>>
OTC Markets Group belongs to the Zacks Securities and Exchanges industry. Another stock from the same industry, Nasdaq (NDAQ), closed the last trading session 0.5% higher at $90.55. Over the past month, NDAQ has returned 5.2%.
For Nasdaq, the consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $0.79. This represents a change of +14.5% from what the company reported a year ago. Nasdaq currently has a Zacks Rank of #3 (Hold).
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OTC Markets Group Inc. (OTCM): Free Stock Analysis Report Nasdaq, Inc. (NDAQ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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