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Nasdaq (NDAQ) Leverages AI to Enhance Anti-Fin Crime Offerings
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Nasdaq (NDAQ - Free Report) recently announced that it is focusing its resources on AI Technology to enhance its offerings in the Anti-Financial Crime segment, per a Bloomberg report. Nasdaq, being a company backed by its technology, is expected to continue making investments in a bid to enhance its core value proposition. Technological investment bodes well for Nasdaq as its anti-financial crime business is a rapidly growing business, which witnessed a 20% year-over-year increase in the third quarter of 2023.
Nasdaq is a global leader in the anti-financial crime space and aims to expand this business, given the rising demand for anti-financial crime protection. Nasdaq estimates the total addressable market for anti-fin crime to be at $18 billion. NDAQ is expected to leverage AI to predict and accelerate the process of identifying suspicious behavior, enhancing its offerings for banks, brokerage firms and exchanges.
This move highlights Nasdaq’s strategy to rely more on income generated from stable streams than other sources, such as trading income. Nasdaq pursued its biggest acquisition of Adenza in 2023 to help convert NDAQ to a financial services-based company. Apart from these efforts, NDAQ is also adding new products to its exchange, like Spot Bitcoin ETFs. This new product will give investors a chance to get exposure to Bitcoin without really owning it. The company recently got approval from the SEC to list this product in their venue.
Nasdaq expects its Anti-Financial Crime revenues to grow in the range of 18-23% in the next three to five years. The current regulatory environment continuously demands improvement in financial crime protection, posing the company's prospects well for the future.
Zacks Rank & Price Performance
Nasdaq currently carries a Zacks Rank #3 (Hold). In the past three months, the stock has gained 15.3% compared with the industry’s rise of 9.4%.
Arch Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 35.2%.
The Zacks Consensus Estimate for ACGL’s 2023 EPS is pegged at $7.93, indicating a year-over-year increase of 62.8%. The Zacks Consensus Estimate for 2023 revenues suggests a 32.8% rise from the year-ago figure.
Assurant has a solid track record of beating earnings estimates in each of the last four quarters, the average being 42.4%.
The Zacks Consensus Estimate for AIZ’s 2023 and 2024 EPS is pegged at $14.59 and $15.21, indicating a year-over-year increase of 31.1% and 4.3%, respectively.
Axis Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 22.5%.
The Zacks Consensus Estimate for AXS’s 2023 and 2024 EPS is pegged at $8.51 and $9.55, indicating a year-over-year increase of 46.5% and 12.3%, respectively.
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Nasdaq (NDAQ) Leverages AI to Enhance Anti-Fin Crime Offerings
Nasdaq (NDAQ - Free Report) recently announced that it is focusing its resources on AI Technology to enhance its offerings in the Anti-Financial Crime segment, per a Bloomberg report. Nasdaq, being a company backed by its technology, is expected to continue making investments in a bid to enhance its core value proposition. Technological investment bodes well for Nasdaq as its anti-financial crime business is a rapidly growing business, which witnessed a 20% year-over-year increase in the third quarter of 2023.
Nasdaq is a global leader in the anti-financial crime space and aims to expand this business, given the rising demand for anti-financial crime protection. Nasdaq estimates the total addressable market for anti-fin crime to be at $18 billion. NDAQ is expected to leverage AI to predict and accelerate the process of identifying suspicious behavior, enhancing its offerings for banks, brokerage firms and exchanges.
This move highlights Nasdaq’s strategy to rely more on income generated from stable streams than other sources, such as trading income. Nasdaq pursued its biggest acquisition of Adenza in 2023 to help convert NDAQ to a financial services-based company. Apart from these efforts, NDAQ is also adding new products to its exchange, like Spot Bitcoin ETFs. This new product will give investors a chance to get exposure to Bitcoin without really owning it. The company recently got approval from the SEC to list this product in their venue.
Nasdaq expects its Anti-Financial Crime revenues to grow in the range of 18-23% in the next three to five years. The current regulatory environment continuously demands improvement in financial crime protection, posing the company's prospects well for the future.
Zacks Rank & Price Performance
Nasdaq currently carries a Zacks Rank #3 (Hold). In the past three months, the stock has gained 15.3% compared with the industry’s rise of 9.4%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader Finance space are Arch Capital Group Ltd. (ACGL - Free Report) , Assurant, Inc. (AIZ - Free Report) and AXIS Capital Holdings Limited (AXS - Free Report) . Each of these companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arch Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 35.2%.
The Zacks Consensus Estimate for ACGL’s 2023 EPS is pegged at $7.93, indicating a year-over-year increase of 62.8%. The Zacks Consensus Estimate for 2023 revenues suggests a 32.8% rise from the year-ago figure.
Assurant has a solid track record of beating earnings estimates in each of the last four quarters, the average being 42.4%.
The Zacks Consensus Estimate for AIZ’s 2023 and 2024 EPS is pegged at $14.59 and $15.21, indicating a year-over-year increase of 31.1% and 4.3%, respectively.
Axis Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 22.5%.
The Zacks Consensus Estimate for AXS’s 2023 and 2024 EPS is pegged at $8.51 and $9.55, indicating a year-over-year increase of 46.5% and 12.3%, respectively.