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NDAQ Outperforms Industry, Trades Near 52-Week High: Time to Buy?
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Key Takeaways
Nasdaq shares have gained 33.8% in the past year compared with the industrys growth of 15.4%.
For 2025, NDAQ expects Capital Access Platforms revenue growth in the range of 5% to 8% over the medium term.
Nasdaq aims to reach 40-50% SaaS revenues as a percentage of total revenues by 2025.
Shares of Nasdaq, Inc. (NDAQ - Free Report) closed at $94.90 on Friday, near its 52-week high of $97.63. This proximity underscores investor confidence. It has the ingredients for further price appreciation.
Shares of Nasdaq have gained 33.8% in the past year, outperforming the industry, the Finance sector and the Zacks S&P 500 composite’s growth of 15.4%, 16.5% and 16.2%, respectively.
NDAQ has outperformed its peers, including Cboe Global Markets, Inc. (CBOE - Free Report) , Intercontinental Exchange Inc. (ICE - Free Report) and CME Group Inc. (CME - Free Report) , which have gained 16.1%, 11.2% and 26.2%, respectively, in the past year.
Image Source: Zacks Investment Research
With a capitalization of $54.45 billion, the average number of shares traded in the last three months was 3.2 million. Nasdaq surpassed earnings estimates in each of the last four quarters, the average being 4.36%.
NDAQ Trading Above 50-Day and 200-Day Moving Averages
Shares of Nasdaq are trading above the 50-day and 200-day simple moving averages (SMA) of $91.89 and $82.11, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Image Source: Zacks Investment Research
NDAQ’s Growth Projection Encourages
The Zacks Consensus Estimate for Nasdaq’s 2025 earnings per share indicates a year-over-year increase of 17.3%. The consensus estimate for revenues is pegged at $5.14 billion, implying a year-over-year improvement of 10.5%.
The consensus estimate for 2026 earnings per share and revenues indicates an increase of 11.4% and 7.2%, respectively, from the corresponding 2025 estimates.
The long-term earnings growth is expected to be 13.8%, better than the industry average of 10.4%.
Optimist Analyst Sentiment on NDAQ
Each of the 12 analysts covering the stock has raised estimates for both 2025 and 2026 over the past 60 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 earnings has moved up 3.4% and 3.3%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Nasdaq’s Favorable Return on Capital
Return on equity in the trailing 12 months was 15.9%, better than the industry average of 14.5%. This highlights the company’s efficiency in utilizing shareholders’ funds.
Also, the return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame, reflecting NDAQ’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 7.1%, better than the industry average of 6%.
What's Aiding NDAQ's Performance?
Nasdaq’s growth strategy focuses on generating more revenues from high-growth Market Technology and Investment Intelligence segments, forward R&D spending on higher-growth products, expansion of its Anti-Financial Crime clientele and innovations.
The company expects strong growth from its index and analytics businesses and moderate growth in its exchange data products across U.S. and Nordic equities. For 2025, Nasdaq continues to expect Capital Access Platforms to deliver revenue growth within its medium-term growth outlook range of 5% to 8% with subdivision revenue growth expected to be consistent with prior comments provided in January and Financial Technology to deliver revenue growth within its medium-term growth outlook range of 10-14% and total Solutions revenue growth of 8% to 11% over the medium term.
NDAQ has an impressive inorganic story, providing it with direct access to the Canadian equities market, expanding its technology offerings, and enhancing its market surveillance techniques.
Nasdaq noted that the anti-fin crime space has a total addressable market of $12.5 billion. Nasdaq aims to achieve 40-50% SaaS revenues as a percentage of total revenues this year.
Final Take on NDAQ Stock
Nasdaq is set to grow on impressive organic growth, an increasing on-trading revenue base and strategic buyouts to capitalize on market opportunities. Nasdaq is investing in proprietary data, migrating markets and SaaS solutions to capitalize on the growth opportunities in the cryptocurrency markets.
NDAQ’s dividend story is impressive. It has steadily increased its dividend each year and will continue to do so to achieve a dividend payout ratio of 35-38% by 2027.
Coupled with the positive analyst sentiment, solid growth projections as well as Higher return on capital, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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NDAQ Outperforms Industry, Trades Near 52-Week High: Time to Buy?
Key Takeaways
Shares of Nasdaq, Inc. (NDAQ - Free Report) closed at $94.90 on Friday, near its 52-week high of $97.63. This proximity underscores investor confidence. It has the ingredients for further price appreciation.
Shares of Nasdaq have gained 33.8% in the past year, outperforming the industry, the Finance sector and the Zacks S&P 500 composite’s growth of 15.4%, 16.5% and 16.2%, respectively.
NDAQ has outperformed its peers, including Cboe Global Markets, Inc. (CBOE - Free Report) , Intercontinental Exchange Inc. (ICE - Free Report) and CME Group Inc. (CME - Free Report) , which have gained 16.1%, 11.2% and 26.2%, respectively, in the past year.
Image Source: Zacks Investment Research
With a capitalization of $54.45 billion, the average number of shares traded in the last three months was 3.2 million. Nasdaq surpassed earnings estimates in each of the last four quarters, the average being 4.36%.
NDAQ Trading Above 50-Day and 200-Day Moving Averages
Shares of Nasdaq are trading above the 50-day and 200-day simple moving averages (SMA) of $91.89 and $82.11, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
Image Source: Zacks Investment Research
NDAQ’s Growth Projection Encourages
The Zacks Consensus Estimate for Nasdaq’s 2025 earnings per share indicates a year-over-year increase of 17.3%. The consensus estimate for revenues is pegged at $5.14 billion, implying a year-over-year improvement of 10.5%.
The consensus estimate for 2026 earnings per share and revenues indicates an increase of 11.4% and 7.2%, respectively, from the corresponding 2025 estimates.
The long-term earnings growth is expected to be 13.8%, better than the industry average of 10.4%.
Optimist Analyst Sentiment on NDAQ
Each of the 12 analysts covering the stock has raised estimates for both 2025 and 2026 over the past 60 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 earnings has moved up 3.4% and 3.3%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Nasdaq’s Favorable Return on Capital
Return on equity in the trailing 12 months was 15.9%, better than the industry average of 14.5%. This highlights the company’s efficiency in utilizing shareholders’ funds.
Also, the return on invested capital (ROIC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame, reflecting NDAQ’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 7.1%, better than the industry average of 6%.
What's Aiding NDAQ's Performance?
Nasdaq’s growth strategy focuses on generating more revenues from high-growth Market Technology and Investment Intelligence segments, forward R&D spending on higher-growth products, expansion of its Anti-Financial Crime clientele and innovations.
The company expects strong growth from its index and analytics businesses and moderate growth in its exchange data products across U.S. and Nordic equities. For 2025, Nasdaq continues to expect Capital Access Platforms to deliver revenue growth within its medium-term growth outlook range of 5% to 8% with subdivision revenue growth expected to be consistent with prior comments provided in January and Financial Technology to deliver revenue growth within its medium-term growth outlook range of 10-14% and total Solutions revenue growth of 8% to 11% over the medium term.
NDAQ has an impressive inorganic story, providing it with direct access to the Canadian equities market, expanding its technology offerings, and enhancing its market surveillance techniques.
Nasdaq noted that the anti-fin crime space has a total addressable market of $12.5 billion. Nasdaq aims to achieve 40-50% SaaS revenues as a percentage of total revenues this year.
Final Take on NDAQ Stock
Nasdaq is set to grow on impressive organic growth, an increasing on-trading revenue base and strategic buyouts to capitalize on market opportunities. Nasdaq is investing in proprietary data, migrating markets and SaaS solutions to capitalize on the growth opportunities in the cryptocurrency markets.
NDAQ’s dividend story is impressive. It has steadily increased its dividend each year and will continue to do so to achieve a dividend payout ratio of 35-38% by 2027.
Coupled with the positive analyst sentiment, solid growth projections as well as Higher return on capital, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.