This week’s trade is Nasdaq itself. The highlights are a recent breakout of a multi-month consolidation, a reasonable P/E multiple (31.15), good quarterly earnings growth (39.50%) and even a dividend! Also, strength in the technology sphere is promising news for the market in general. Enjoy!
Company profile: Nasdaq, Inc. provides trading, clearing, marketplace technology, regulatory, securities listing, information, and public and private company services worldwide. The company’s Market Services segment offers equity derivative trading and clearing; cash equity trading; fixed income and commodities trading and clearing; and trade management services. This segment operates various exchanges and other marketplace facilities across various asset classes; and provides broker, clearing, settlement, and central depository services. It’s Corporate Services segment offers capital market and governance solutions; and liquidity solutions for private companies and private funds. This segment also operates various listing platforms, which offer capital raising solutions for private and public companies. The company’s Information Services segment sells and distributes historical and real-time quote and trade information to sell-side, the buy-side, retail online brokers, proprietary trading shops, other venues, Internet portals, and data distributors; and develops and licenses Nasdaq branded indexes, associated derivatives, and financial products, as well as provides custom calculation services. This segment also offers content and analytics for asset managers, investment consultants, and asset owners. It’s Market Technology segment provides solutions for trading, clearing, settlement, surveillance, depository, and information dissemination to markets. It also provides brokerage services through SMARTS, a managed service designed for brokers and other market participants; and TradeGuard, a suite of products for risk management.
Trailing P/E: 31.15, Forward P/E: 18.20
EPS: 3.15, PEG: 2.92
P/S: 3.91, P/B: 2.96
Profit margin: 12.68, Operating margin: 25.95%
ROA: 4.46%, ROE: 9.41%
Qrtly earnings growth: 39.50%, Current ratio: 0.84
Dividend yield: 1.92%
Additional fundamental data: https://finance.yahoo.com/quote/NDAQ/key-statistics?p=NDAQ
Recently broke out of a 12-month consolidation
New 52-week high, New all-time high
Buying momentum is overbought, Buying volume is neutral
A 1st support level is $95.00, The safety stop is at $94.45
The target is $111.75
Suggested buying approach: As NDAQ is overbought, we suggest buying a half position now. If the security pulls back, wait for confirmation of support and then add to the position, if desired. Always use a 3% trailing stop.