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ICE (ICE) Soars 3.4%: Is Further Upside Left in the Stock?

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IntercontinentalExchange (ICE - Free Report) shares soared 3.4% in the last trading session to close at $156.81. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.9% loss over the past four weeks.

The surge in price reflects investors' optimism on the announcement of a 90-day pause on tariffs imposed by President Trump on most countries, though a 10% tariff stays in place. Major stock exchanges witnessed surge yesterday given market volatility. 

Intercontinental is set to grow on the strength in global data services and index business, growth in pricing and reference data business, and strength in ICE Global Network offering, solid desktop, feeds and derivatives analytics. The company has been achieving expense synergies from strategic acquisitions, which have also strengthened its portfolio and expanded its presence.

ICE continuously engages in strategic investments supported by a healthy and minimal risk-based balance sheet, which also offers stability and buoyancy over the medium to long term.

This owner of the New York Stock Exchange and other stock markets is expected to post quarterly earnings of $1.68 per share in its upcoming report, which represents a year-over-year change of +13.5%. Revenues are expected to be $2.44 billion, up 6.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For ICE, the consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ICE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

ICE is part of the Zacks Securities and Exchanges industry. CME Group (CME - Free Report) , another stock in the same industry, closed the last trading session 0.4% lower at $254.13. CME has returned -2.1% in the past month.

For CME, the consensus EPS estimate for the upcoming report has changed +2.2% over the past month to $2.70. This represents a change of +8% from what the company reported a year ago. CME currently has a Zacks Rank of #1 (Strong Buy).


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