We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Hold Nasdaq (NDAQ) in Your Portfolio
Read MoreHide Full Article
Nasdaq’s (NDAQ - Free Report) focus on Market Technology and Information Services businesses, improving operating leverage and solid capital position make its worthy of retention in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for 2021 earnings is pegged at $6.40, which indicates 3.6% increase year over year on 5.6% higher revenues of $3.1 billion. The consensus estimate for 2022 earnings is pegged at $6.83, indicating year-over-year increase of 6.2% on 5.3% higher revenues of $3.2 billion. The expected long-term earnings growth rate is pegged at 4.1%.
Zacks Rank & Price Performance
Nasdaq currently carries a Zacks Rank #3 (Hold). Year to date, the stock has rallied 10.8%, outperforming the industry’s increase of 2.6%.
Return on Equity (ROE)
The company’s ROE for the trailing 12 months is 17.5%, better than the industry average of 11.8%. It reflects the company’s efficiency in utilizing shareholders’ fund. The company targets double-digit total shareholders return.
Estimate Revision
The Zacks Consensus Estimate for 2021 and 2022 has moved 0.8% and 0.4% north in the past 30 days, reflecting analyst optimism.
Earnings Surprise History
Nasdaq surpassed estimates in the last eight reported quarters, with the average beat being 4.67%.
Business Tailwinds
Nasdaq boasts significant and leading positions in large, high growth markets like Index, Analytics, Market Technology, and IR & ESG Services. It targets 5% to 8% of revenues generated from new trading offerings and products by 2025.
Nasdaq has invested $1.2 billion in growth platforms and targets a significant share of more than $22 billion addressable market.
Nasdaq’s organic growth has been also aided by its strategy of accelerating its non-trading revenue base, which includes market technology, listing and information revenues. It estimates 5%-8% revenue organic growth at Investment Intelligence, 8%-11% at Market Technology and 3%-5% at Corporate Platforms over the medium term. Nasdaq estimates non-trading revenues to grow 5%-7% over the long term.
Riding on the strength of its healthy balance sheet, the company increased dividend at a five-year CAGR (2016-2020) of 13.5%. It had $410 million remaining under its share repurchase authorization as of Dec 31, 2020.
Athene delivered an earnings surprise of 31.9% in the last reported quarter.
Sun Life Financial delivered an earnings surprise of 17.71% in the last reported quarter.
James River Group delivered an earnings surprise of 6.86% in the last reported quarter.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Here's Why You Should Hold Nasdaq (NDAQ) in Your Portfolio
Nasdaq’s (NDAQ - Free Report) focus on Market Technology and Information Services businesses, improving operating leverage and solid capital position make its worthy of retention in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for 2021 earnings is pegged at $6.40, which indicates 3.6% increase year over year on 5.6% higher revenues of $3.1 billion. The consensus estimate for 2022 earnings is pegged at $6.83, indicating year-over-year increase of 6.2% on 5.3% higher revenues of $3.2 billion. The expected long-term earnings growth rate is pegged at 4.1%.
Zacks Rank & Price Performance
Nasdaq currently carries a Zacks Rank #3 (Hold). Year to date, the stock has rallied 10.8%, outperforming the industry’s increase of 2.6%.
Return on Equity (ROE)
The company’s ROE for the trailing 12 months is 17.5%, better than the industry average of 11.8%. It reflects the company’s efficiency in utilizing shareholders’ fund. The company targets double-digit total shareholders return.
Estimate Revision
The Zacks Consensus Estimate for 2021 and 2022 has moved 0.8% and 0.4% north in the past 30 days, reflecting analyst optimism.
Earnings Surprise History
Nasdaq surpassed estimates in the last eight reported quarters, with the average beat being 4.67%.
Business Tailwinds
Nasdaq boasts significant and leading positions in large, high growth markets like Index, Analytics, Market Technology, and IR & ESG Services. It targets 5% to 8% of revenues generated from new trading offerings and products by 2025.
Nasdaq has invested $1.2 billion in growth platforms and targets a significant share of more than $22 billion addressable market.
Nasdaq’s organic growth has been also aided by its strategy of accelerating its non-trading revenue base, which includes market technology, listing and information revenues. It estimates 5%-8% revenue organic growth at Investment Intelligence, 8%-11% at Market Technology and 3%-5% at Corporate Platforms over the medium term. Nasdaq estimates non-trading revenues to grow 5%-7% over the long term.
Riding on the strength of its healthy balance sheet, the company increased dividend at a five-year CAGR (2016-2020) of 13.5%. It had $410 million remaining under its share repurchase authorization as of Dec 31, 2020.
Stocks to Consider
Some better-ranked stocks from the finance sector include Athene , Sun Life Financial (SLF - Free Report) and James River Group Holdings (JRVR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Athene delivered an earnings surprise of 31.9% in the last reported quarter.
Sun Life Financial delivered an earnings surprise of 17.71% in the last reported quarter.
James River Group delivered an earnings surprise of 6.86% in the last reported quarter.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>