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.
MarketAxess (MKTX) Up 41% in 3 Months: What Lies Ahead?
Read MoreHide Full Article
Shares of MarketAxess Holdings Inc. (MKTX - Free Report) have climbed 41.2% in the past three months compared with the industry’s 26.4% growth. The Zacks Finance sector and the S&P 500 composite index rose 14.5% and 10.9%, respectively, in the same time frame. With a market capitalization of $11.2 billion, the average volume of shares traded in the last three months was 0.4 million.
Growing commissions, solid credit trading volume, the extensive reach of the Open Trading platform, acquisitions and a notable financial position continue to drive MarketAxess.
The leading electronic trading platform operator, presently carrying a Zacks Rank #3 (Hold), has a decent track record of beating estimates in three of the trailing four quarters and missing the mark once, the average surprise being 2.03%.
Image Source: Zacks Investment Research
Return on equity in the trailing 12 months is currently 21.9%, which is higher than the industry’s average of 12.4%. This substantiates the company’s efficiency in utilizing shareholders’ funds.
Can MKTX Retain the Momentum?
The Zacks Consensus Estimate for MarketAxess’ 2023 earnings is pegged at $6.63 per share, which has witnessed two upward estimate revisions in the past 30 days against none in the opposite direction. The estimate has improved 0.2% during this period. The consensus mark for revenues is $747.1 million, which indicates an improvement of 4% from the prior-year figure.
The Zacks Consensus Estimate for 2024 earnings is pegged at $7.45 per share, which suggests a 12.3% increase from the 2023 estimate. The consensus mark for revenues is $847 million, implying 13.4% growth from the 2023 estimate.
MarketAxess’ top line is aided by improved trading volumes across most of its credit product categories. This, in turn, brings about growth in commissions, which account for a significant chunk of MKTX’s revenues. Commissions accounted for 88.4% of revenues in the first nine months of 2023.
Its trading volumes receives a boost from accelerated market share gains and a diversified product suite comprising U.S. High Grade, U.S. High Yield, Eurobond, Emerging markets and Municipal Bonds. In the first nine months of 2023, MKTX generated a credit trading volume of $2.3 trillion, which rose 4.8% from the prior-year comparable period.
MarketAxess pursues buyouts and collaborations to enhance the capabilities of its trading platform, step into new markets, launch new products or services and expand its reach across the fixed-income markets. This October, it acquired the quantitative trading technology provider, Pragma, for upgrading the efficiency of MKTX’s trading platform. Also, it teamed up with Investortools in June 2023 to integrate its municipal bonds within the Investortools Dealer Network and result in higher electronic trading of municipal bonds.
The Open Trading platform, unveiled almost a decade ago, has created a global and diverse pool of liquidity and provides an opportunity for institutional investor clients, dealer clients and alternative liquidity providers to communicate with each other without the need to disclose one’s identity. It promises to bring meaningful price improvement for the client base and attract newer potential trading counterparties. As a testament to the same, MKTX’s clients carried out a credit trading volume of around $939.6 billion in 2022, leveraging the solution, and realized roughly $945.3 million in estimated price improvement.
In October 2023, MarketAxess launched the Open Trading for local currency bonds of Poland, Czech Republic, Hungary and South Africa in a bid to extend the reach of its emerging market product. Clients outside the United States can also reap the benefits of the MKTX platform through its regulated venues in Europe, Asia and Latin America. Thereby, the international clients face lesser regulatory constraints and subsequently, avail cross-border liquidity seamlessly.
To pursue technology investments, which is a continual need to upgrade its electronic trading platform and stay ahead of its peers, financial strength is a compulsion. Sound cash reserves and robust cash-generating abilities bear evidence to the strong financial stand of MarketAxess. It also believes in returning capital to shareholders via share buybacks and dividend payments.
Stocks to Consider
Some better-ranked stocks in the Finance space are Cboe Global Markets, Inc. (CBOE - Free Report) , Innovative Industrial Properties, Inc. (IIPR - Free Report) and Orange County Bancorp, Inc. (OBT - Free Report) . While CBOE Global sports a Zacks Rank #1 (Strong Buy), Innovative Industrial Properties and Orange County Bancorp carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CBOE Global’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.07%. The Zacks Consensus Estimate for CBOE’s 2023 earnings suggests an improvement of 9.5% while the consensus estimate for revenues suggests growth of 9.7% from the corresponding year-ago reported figures. The consensus mark for CBOE’s 2023 earnings has moved 3.1% north in the past 60 days.
The bottom line of Innovative Industrial Properties outpaced estimates in each of the last four quarters, the average surprise being 7.67%. The Zacks Consensus Estimate for IIPR’s 2023 earnings suggests an improvement of 7.5% while the consensus estimate for revenues suggests growth of 11.3% from the corresponding year-ago reported figures. The consensus mark for IIPR’s 2023 earnings has moved 2.3% north in the past 60 days.
Orange County Bancorp's earnings beat estimates in each of the trailing four quarters, the average surprise being 29.30%. The Zacks Consensus Estimate for OBT’s 2023 earnings suggests an improvement of 34.6% while the consensus estimate for revenues suggests growth of 11.5% from the corresponding year-ago reported figures. The consensus mark for OBT’s 2023 earnings has moved 3% north in the past 60 days.
Shares of CBOE Global, Innovative Industrial Properties and Orange County Bancorp have gained 13.8%, 37.8% and 44.7%, respectively, in the past three months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
MarketAxess (MKTX) Up 41% in 3 Months: What Lies Ahead?
Shares of MarketAxess Holdings Inc. (MKTX - Free Report) have climbed 41.2% in the past three months compared with the industry’s 26.4% growth. The Zacks Finance sector and the S&P 500 composite index rose 14.5% and 10.9%, respectively, in the same time frame. With a market capitalization of $11.2 billion, the average volume of shares traded in the last three months was 0.4 million.
Growing commissions, solid credit trading volume, the extensive reach of the Open Trading platform, acquisitions and a notable financial position continue to drive MarketAxess.
The leading electronic trading platform operator, presently carrying a Zacks Rank #3 (Hold), has a decent track record of beating estimates in three of the trailing four quarters and missing the mark once, the average surprise being 2.03%.
Image Source: Zacks Investment Research
Return on equity in the trailing 12 months is currently 21.9%, which is higher than the industry’s average of 12.4%. This substantiates the company’s efficiency in utilizing shareholders’ funds.
Can MKTX Retain the Momentum?
The Zacks Consensus Estimate for MarketAxess’ 2023 earnings is pegged at $6.63 per share, which has witnessed two upward estimate revisions in the past 30 days against none in the opposite direction. The estimate has improved 0.2% during this period. The consensus mark for revenues is $747.1 million, which indicates an improvement of 4% from the prior-year figure.
The Zacks Consensus Estimate for 2024 earnings is pegged at $7.45 per share, which suggests a 12.3% increase from the 2023 estimate. The consensus mark for revenues is $847 million, implying 13.4% growth from the 2023 estimate.
MarketAxess’ top line is aided by improved trading volumes across most of its credit product categories. This, in turn, brings about growth in commissions, which account for a significant chunk of MKTX’s revenues. Commissions accounted for 88.4% of revenues in the first nine months of 2023.
Its trading volumes receives a boost from accelerated market share gains and a diversified product suite comprising U.S. High Grade, U.S. High Yield, Eurobond, Emerging markets and Municipal Bonds. In the first nine months of 2023, MKTX generated a credit trading volume of $2.3 trillion, which rose 4.8% from the prior-year comparable period.
MarketAxess pursues buyouts and collaborations to enhance the capabilities of its trading platform, step into new markets, launch new products or services and expand its reach across the fixed-income markets. This October, it acquired the quantitative trading technology provider, Pragma, for upgrading the efficiency of MKTX’s trading platform. Also, it teamed up with Investortools in June 2023 to integrate its municipal bonds within the Investortools Dealer Network and result in higher electronic trading of municipal bonds.
The Open Trading platform, unveiled almost a decade ago, has created a global and diverse pool of liquidity and provides an opportunity for institutional investor clients, dealer clients and alternative liquidity providers to communicate with each other without the need to disclose one’s identity. It promises to bring meaningful price improvement for the client base and attract newer potential trading counterparties. As a testament to the same, MKTX’s clients carried out a credit trading volume of around $939.6 billion in 2022, leveraging the solution, and realized roughly $945.3 million in estimated price improvement.
In October 2023, MarketAxess launched the Open Trading for local currency bonds of Poland, Czech Republic, Hungary and South Africa in a bid to extend the reach of its emerging market product. Clients outside the United States can also reap the benefits of the MKTX platform through its regulated venues in Europe, Asia and Latin America. Thereby, the international clients face lesser regulatory constraints and subsequently, avail cross-border liquidity seamlessly.
To pursue technology investments, which is a continual need to upgrade its electronic trading platform and stay ahead of its peers, financial strength is a compulsion. Sound cash reserves and robust cash-generating abilities bear evidence to the strong financial stand of MarketAxess. It also believes in returning capital to shareholders via share buybacks and dividend payments.
Stocks to Consider
Some better-ranked stocks in the Finance space are Cboe Global Markets, Inc. (CBOE - Free Report) , Innovative Industrial Properties, Inc. (IIPR - Free Report) and Orange County Bancorp, Inc. (OBT - Free Report) . While CBOE Global sports a Zacks Rank #1 (Strong Buy), Innovative Industrial Properties and Orange County Bancorp carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CBOE Global’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.07%. The Zacks Consensus Estimate for CBOE’s 2023 earnings suggests an improvement of 9.5% while the consensus estimate for revenues suggests growth of 9.7% from the corresponding year-ago reported figures. The consensus mark for CBOE’s 2023 earnings has moved 3.1% north in the past 60 days.
The bottom line of Innovative Industrial Properties outpaced estimates in each of the last four quarters, the average surprise being 7.67%. The Zacks Consensus Estimate for IIPR’s 2023 earnings suggests an improvement of 7.5% while the consensus estimate for revenues suggests growth of 11.3% from the corresponding year-ago reported figures. The consensus mark for IIPR’s 2023 earnings has moved 2.3% north in the past 60 days.
Orange County Bancorp's earnings beat estimates in each of the trailing four quarters, the average surprise being 29.30%. The Zacks Consensus Estimate for OBT’s 2023 earnings suggests an improvement of 34.6% while the consensus estimate for revenues suggests growth of 11.5% from the corresponding year-ago reported figures. The consensus mark for OBT’s 2023 earnings has moved 3% north in the past 60 days.
Shares of CBOE Global, Innovative Industrial Properties and Orange County Bancorp have gained 13.8%, 37.8% and 44.7%, respectively, in the past three months.