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Nasdaq's (NDAQ) Volumes in May Increase Year Over Year

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Nasdaq, Inc. (NDAQ - Free Report) reported volumes for the month of May. While U.S. equity options volume increased 17.5% year over year to 181 million contracts, European options and futures volume decreased 37.9% year over year to 5.4 million contracts.

Under its Cash Equities, Nasdaq’s U.S. matched equity volume in the month grossed 40.2 billion shares, up 26.4% year over year. European equity volume improved nearly 25% year over year to $80.1 billion.

Under its Fixed Income and Commodities, U.S. Fixed income volume in March declined 62.6% to $402 billion. European fixed income volume decreased 10% to 1.8 million contracts.

Nasdaq aims for long-term growth by banking on organic means. The company is ramping up its non-transaction revenue base, which includes market technology, listing and information revenues. It is also expanding its technology and analytics offerings.

Its organic growth has also been boosted by the strategy of accelerating its non-trading revenue base, which includes market technology, listing and information revenues. The company’s organic growth in non-trading segments was 8% in 2019, primarily attributable to its Market Technology, Index, and Investment Data & Analytics businesses. Thus, Nasdaq expects to witness growth in its index and analytics businesses, followed by moderate growth in its exchange data products across U.S. and Nordic equities, options and fixed income businesses.

Shares of the Zacks Rank #3 (Hold) company have gained 31% in the past year, outperforming the industry’s increase of 13.2%. The Zacks Consensus Estimate for second-quarter 2020 earnings per share is pegged at $1.37, suggesting an improvement of 12.3% from the year-ago reported figure.

 

Stocks to Consider

Some better-ranked stocks from the security and exchange sector include MarketAxess Holdings Inc (MKTX - Free Report) , Cboe Global Markets Inc. (CBOE - Free Report) and Intercontinental Exchange (ICE - Free Report) . While MarketAxess sports a Zacks Rank #1 (Strong Buy), Cboe Global and Intercontinental Exchange carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

MarketAxess operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments worldwide. It surpassed estimates in three of the last four quarters, with the average positive surprise being 1.09%.

Cboe Global operates as an options exchange in the United States. It surpassed estimates in each of the last four quarters, with the average positive surprise being 8.24%.

Intercontinental Exchange operates regulated exchanges, clearing houses and listings venues for commodity, financial, fixed income and equity markets in the United States, European Union and Canada. It surpassed estimates in each of the last four quarters, with the average positive surprise being 4.46%.

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