Nasdaq, Inc. (NDAQ - Free Report) reported volumes for the month of August. While U.S. equity options volume increased 36.9% year over year to 215 million contracts, European options and futures volume decreased 34.7% year over year to 4.9 million contracts.
Under its Cash Equities, Nasdaq’s U.S. matched equity volume in the month grossed 36.3 billion shares, up 10.2% year over year. European equity volume improved nearly 9.5% year over year to $68.9 billion.
Under its Fixed Income and Commodities, U.S. Fixed income volume in August declined 65.8% to $428 billion. European fixed income volume decreased 13% to 2 million contracts.
Nasdaq aims for long-term growth by banking on organic means. The company is ramping up its non-transaction revenue base, which includes market technology, listing and information revenues. It is also expanding its technology and analytics offerings.
Its organic growth has also been boosted by the strategy of accelerating its non-trading revenue base, which includes market technology, listing and information revenues. The company’s organic growth in non-trading segments was 9.6% in the first half of 2020, primarily attributable to its Index and Investment Data & Analytics businesses. Market Technology revenues increased 5.8% in the first half of 2020 due to increases in SaaS surveillance revenues and software delivery and support projects. Thus, Nasdaq expects to witness growth in its index and analytics businesses, followed by moderate growth in its exchange data products across U.S. and Nordic equities, options and fixed income businesses.
Shares of this Zacks Rank #3 (Hold) company have gained 28.2% year to date, outperforming the industry’s increase of 4.9%. The Zacks Consensus Estimate for 2020 earnings per share is pegged at $5.84, indicating improvement of 16.8% from the year-ago reported figure.
Stocks to Consider
Some better-ranked stocks from the finance sector include MarketAxess Holdings Inc. (MKTX - Free Report) , OTC Markets Group Inc. (OTCM - Free Report) and Equitable Holdings, Inc. (EQH - 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.
MarketAxess operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments worldwide. It surpassed estimates in each of the last four quarters, with the average earnings surprise being 2.49%.
OTC Markets engages in the financial market business in the United States and internationally. It surpassed estimates in three of the last four quarters, with the average earnings beat being 10.54%.
Equitable Holdings operates as a diversified financial services company worldwide. It surpassed estimates in three of the last four quarters, with the average earnings beat being 13.79%.
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