Money
Finance Stock Tradeweb Markets (TW): A Tale of Two Worlds
2024-11-22
Finance stock Tradeweb Markets (TW) has long been renowned for its unique ability to offer the best of both worlds. It achieves solid gains while maintaining lower volatility, and now, with the election of Donald Trump, the Big Cap 20 stock is experiencing a significant lift.
Finance Stock Falls On Results, But Not For Long
In the third quarter, Tradeweb faced some pressure as sellers drove the stock lower after reporting earnings on Oct. 30. However, shares quickly found support and began to head higher, forming a flat base. As the Trump rally propelled the stock market into high gear on Nov. 6, Tradeweb rebounded from its 50-day moving average and went on a five-day winning streak, touching an all-time high on Wednesday. Although it poked into the buy zone from an entry point of 136.13 up to 142.94, it pulled back on Thursday. Nevertheless, the second-stage flat base indicates that the rally may still be in its early stages.The company saw sales rise 37% to $448.9 million with earnings per share of 75 cents, a 36% increase. Despite volatile rates and an uncertain economic backdrop, Tradeweb was able to increase revenue by working closely with clients. As a result, average daily volume rose 55% from the prior year to $2.2 trillion. Since the September-quarter report, average daily volume has continued to increase, rising 34.1% to $2.35 trillion in October while total trading volume was $54.7 trillion.Tradeweb has been actively pursuing acquisitions. In August, it bought Institutional Cash Distributors, specializing in U.S. money market funds and other short-term investments. It also acquired Yieldbroker, a trading platform for Australian and New Zealand government bonds, and in January, it acquired r8fin and its tools for trading U.S. Treasury bonds.Bullish Signals On Tradeweb Markets Chart
Tradeweb has several bullish chart signals working in its favor. Alongside the rising 50-day moving average, the green earnings line on IBD MarketSurge’s weekly chart shows steady earnings growth and is trending higher. Earnings growth has accelerated over the past two quarters, ranging between 11% and 36% over an eight-quarter period. This has helped it achieve a high Earnings Per Share Rating of 98 out of a possible 99 in Investor’s Business Daily’s rankings.Analysts expect rising profits to boost earnings in 2024 and 2025. In 2024, they foresee profits rising 28% with earnings of $2.90 a share, and in 2025, profits are expected to rise again by 14% to $3.32 a share.Over the past 52 weeks, the finance stock has outperformed 85% of other stocks in the IBD database. Its all-around performance is top-notch, reflected in an ideal Composite Rating of 99.First Place In A Highly Ranked Group
According to IBD Stock CheckUp, Tradeweb also holds first place in a high-ranking group. It is in the specialty financial services group, which ranks 7th among 197 industry groups in the IBD database.Tradeweb provides a marketplace for trading stocks, bonds, and money market securities. Its initial public offering took place in April 2019 at $27 per share, and as of Wednesday’s closing price, the stock has gained 400% since it started trading.More funds have been net buyers of the stock in five out of the past seven quarters. The Artisan Midcap Fund (ARTMX) and the Allspring Growth Fund (SGRAX) are among those holding shares of Tradeweb Markets.Please follow VRamakrishnan on X/Twitter for more news on the stock market today.