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Compelling Reasons to Retain Intercontinental (ICE) Stock Now
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Intercontinental Exchange, Inc. (ICE - Free Report) has been favored by investors on the back of a compelling portfolio, expansive risk-management services, strategic buyouts, solid balance sheet and effective capital deployment.
Zacks Rank & Price Performance
Intercontinental currently carries a Zacks Rank #3 (Hold). Over the past year, the stock has gained 29.7% compared with the industry’s growth of 32.1%.
Image Source: Zacks Investment Research
Growth Projections
The Zacks Consensus Estimate for Intercontinental’s 2024 earnings per share indicates a year-over-year increase of 5.5% from the consensus estimate of 2023. The consensus estimate for revenues is pegged at $9.20 billion, implying a year-over-year improvement of 15.1% from the consensus mark of 2023.
The consensus estimate for 2025 earnings per share indicates a year-over-year increase of 11.1% from the consensus estimate of 2024. The consensus estimate for 2025 revenues is pinned at $9.69 billion, implying a year-over-year improvement of 5.3% from the consensus mark of 2024.
The expected long-term earnings growth rate is 9.5%, which is better than the industry average of 8.9%.
Earnings Surprise History
Intercontinental has a solid surprise history, delivering a four-quarter average earnings surprise of 3.12%.
Estimate Revision
The Zacks Consensus Estimate for 2024 and 2025 earnings has moved 0.3% north each in the past seven days, reflecting analysts’ optimism.
Growth Drivers
With more than 5,000 indices representing over $1 trillion in benchmark assets under management, ICE is the second-largest global fixed-income provider.
ICE’s top line continues to benefit from an expansive and compelling product and service portfolio. The Black Knight acquisition complements existing revenue streams and improves the mix of high-growth recurring revenues. ICE estimates mid-single digit growth in Fixed Income and Data Services recurring revenues. The company has an impressive inorganic growth story, which has also helped it achieve expense synergies.
ICE, with the largest mortgage network across the United States, remains well-poised to benefit from accelerated digitization in the U.S. residential mortgage industry. Intercontinental projects Mortgage revenues to grow at an average annual rate of 8-10% over the next 10 years, while the Mortgage Technology business is expected to grow in the low to mid-teens. The insurer estimates mid-to-high-single-digit growth in recurring revenues in the mortgage technology segment in 2024.
Its healthy and minimal risk-based balance sheet is likely to continue providing stability and buoyancy over the medium to long term while supporting strategic investments.
A solid capital position aids Intercontinental in boosting shareholders' value by buying back shares and raising dividends. While ICE has more than doubled its dividends in the last six years, it has $2.5 billion remaining under its authorization kitty.
Coinbase Global has a solid track record of beating earnings estimates in each of the last four quarters, the average being 377.57%. In the past year, shares of COIN have skyrocketed 286.4%.
The Zacks Consensus Estimate for COIN’s 2024 and 2025 earnings has moved 66.3% and 114.7% north, respectively, in the past 30 days, reflecting analysts’ optimism.
Enact Holdings delivered a four-quarter average earnings surprise of 24.59%. In a year, shares of ACT have soared 33.5%.
The Zacks Consensus Estimate for ACT’s 2024 and 2025 earnings has moved up 0.7% and 1.5%, respectively, in the past 30 days.
The Zacks Consensus Estimate for CNO Financial’s 2024 and 2025 earnings implies year-over-year growth of 2.5% and 7.1%, respectively, from the consensus estimate of the corresponding years. In a year, shares of CNO have jumped 19.6%.
CNO’s earnings surpassed estimates in two of the last four quarters and missed in the other two, the average surprise being 3.62%.
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Compelling Reasons to Retain Intercontinental (ICE) Stock Now
Intercontinental Exchange, Inc. (ICE - Free Report) has been favored by investors on the back of a compelling portfolio, expansive risk-management services, strategic buyouts, solid balance sheet and effective capital deployment.
Zacks Rank & Price Performance
Intercontinental currently carries a Zacks Rank #3 (Hold). Over the past year, the stock has gained 29.7% compared with the industry’s growth of 32.1%.
Image Source: Zacks Investment Research
Growth Projections
The Zacks Consensus Estimate for Intercontinental’s 2024 earnings per share indicates a year-over-year increase of 5.5% from the consensus estimate of 2023. The consensus estimate for revenues is pegged at $9.20 billion, implying a year-over-year improvement of 15.1% from the consensus mark of 2023.
The consensus estimate for 2025 earnings per share indicates a year-over-year increase of 11.1% from the consensus estimate of 2024. The consensus estimate for 2025 revenues is pinned at $9.69 billion, implying a year-over-year improvement of 5.3% from the consensus mark of 2024.
The expected long-term earnings growth rate is 9.5%, which is better than the industry average of 8.9%.
Earnings Surprise History
Intercontinental has a solid surprise history, delivering a four-quarter average earnings surprise of 3.12%.
Estimate Revision
The Zacks Consensus Estimate for 2024 and 2025 earnings has moved 0.3% north each in the past seven days, reflecting analysts’ optimism.
Growth Drivers
With more than 5,000 indices representing over $1 trillion in benchmark assets under management, ICE is the second-largest global fixed-income provider.
ICE’s top line continues to benefit from an expansive and compelling product and service portfolio. The Black Knight acquisition complements existing revenue streams and improves the mix of high-growth recurring revenues. ICE estimates mid-single digit growth in Fixed Income and Data Services recurring revenues. The company has an impressive inorganic growth story, which has also helped it achieve expense synergies.
ICE, with the largest mortgage network across the United States, remains well-poised to benefit from accelerated digitization in the U.S. residential mortgage industry. Intercontinental projects Mortgage revenues to grow at an average annual rate of 8-10% over the next 10 years, while the Mortgage Technology business is expected to grow in the low to mid-teens. The insurer estimates mid-to-high-single-digit growth in recurring revenues in the mortgage technology segment in 2024.
Its healthy and minimal risk-based balance sheet is likely to continue providing stability and buoyancy over the medium to long term while supporting strategic investments.
A solid capital position aids Intercontinental in boosting shareholders' value by buying back shares and raising dividends. While ICE has more than doubled its dividends in the last six years, it has $2.5 billion remaining under its authorization kitty.
Stocks to Consider
Some better-ranked stocks from the finance sector are Coinbase Global, Inc. (COIN - Free Report) , Enact Holdings (ACT - Free Report) and CNO Financial Group (CNO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Coinbase Global has a solid track record of beating earnings estimates in each of the last four quarters, the average being 377.57%. In the past year, shares of COIN have skyrocketed 286.4%.
The Zacks Consensus Estimate for COIN’s 2024 and 2025 earnings has moved 66.3% and 114.7% north, respectively, in the past 30 days, reflecting analysts’ optimism.
Enact Holdings delivered a four-quarter average earnings surprise of 24.59%. In a year, shares of ACT have soared 33.5%.
The Zacks Consensus Estimate for ACT’s 2024 and 2025 earnings has moved up 0.7% and 1.5%, respectively, in the past 30 days.
The Zacks Consensus Estimate for CNO Financial’s 2024 and 2025 earnings implies year-over-year growth of 2.5% and 7.1%, respectively, from the consensus estimate of the corresponding years. In a year, shares of CNO have jumped 19.6%.
CNO’s earnings surpassed estimates in two of the last four quarters and missed in the other two, the average surprise being 3.62%.