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New York-based Nasdaq, Inc. (NDAQ) is a technology company that serves capital markets and other industries worldwide. Valued at $39.1 billion by market cap, the company provides trading, clearing, exchange technology, regulatory, securities listing, analysis, investing tools and guides, and financial and information services.
Shares of this leading global technology company have outperformed the broader market considerably over the past year. NDAQ has gained 33.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19.7%. In 2024 alone, NDAQ stock is up 16.9%, surpassing SPX’s 12.1% rise on a YTD basis.
Zooming in further, NDAQ also outperformed the SPDR S&P Capital Markets ETF (KCE). The exchange-traded fund has gained about 27.4% over the past year. Moreover, NDAQ’s gains on a YTD basis outshine the ETF’s 11.3% returns over the same time frame.
NDAQ's overall performance can be attributed to its acquisition of Adenza for $10.5 billion in 2023, which helped its financial technology segment become a powerhouse in fighting fraud and money laundering for banking customers. Additionally, NDAQ remains the top destination for IPOs, showcasing its strength in the financial ecosystem.
On Jul. 25, NDAQ shares closed up more than 7% after reporting its Q2 results. Its adjusted EPS of $0.69 topped Wall Street expectations of $0.64. The company’s revenue was $1.79 billion. Its adjusted revenue was $1.16 billion, surpassing Wall Street forecasts of $1.13 billion.
For the current fiscal year, ending in December, analysts expect NDAQ’s EPS to decline 3.2% to $2.73 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 17 analysts covering NDAQ stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, two “Moderate Buys,” seven “Holds,” and one “Moderate Sell.”
This configuration is more bullish than three months ago, with six analysts suggesting a “Strong Buy.”
On Jul. 30, Oppenheimer analyst Owen Lau increased the price target for Nasdaq to $78 from $75 while maintaining an “Outperform” rating.
The mean price target of $71 represents a 4.4% premium to NDAQ’s current price levels. The Street-high price target of $85 suggests an upside potential of 25%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
