Tuesday's IBD Stock Of The Day is fintech leader Tradeweb Markets, which is rebounding from a key support level. The financial AI stock hit an early buy trigger Tuesday.
Tradeweb, a builder and operator of electronic marketplaces, has seen a number of hedge funds increasingly incorporate Tradeweb's Automated Intelligent Execution (AiEX) tool into their trading systems.
Originally conceived as an efficiency tool to free up traders' time by automating low-touch tickets, AiEX has evolved in new areas. It is now deployed by some of the world's most sophisticated traders. Tradeweb says the technology is creating entirely new avenues of trading across various asset classes and trading environments.
Clients leverage Tradeweb's click-to-trade protocol within AiEX. That allows them to determine when, at what level and with whom to execute their trade. AiEX enables that while creating a minimal market footprint.
The New York-based firm operates across three core areas: institutional (Tradeweb), wholesale (Dealerweb) and retail (Tradeweb Direct).
In the latest quarter, reported on Oct. 30, Tradeweb earned 75 cents per share on revenue of $448.9 million. Earnings climbed 36% vs. the year-ago period, while sales grew 37%. Bullishly, the company boasts two quarters of accelerating earnings and sales growth. Accelerating earnings and sales growth is a hallmark of big stock market winners.
For the full year, Wall Street forecasts the company's earnings will rise 28% before climbing another 14% in 2025, per IBD MarketSurge.
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AI Stock Hits Early Buy Trigger
After hitting a record high on Oct. 15, Tradeweb stock pulled back to its 10-week line, where it is currently finding support. On the weekly chart, shares formed a flat base with a 136.13 buy point, according to IBD MarketSurge chart analysis.
Aggressive investors could use a move above today's high of 131.70 as a trendline early entry. Shares rallied more than 2% Tuesday midday, placing the stock above the early buy trigger.
Bullishly, the stock's relative strength line is bouncing back sharply in recent sessions, a sign that the stock is again beating the performance of the S&P 500.
Amid strong price action over the last two years, Tradeweb stock boasts a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. Tradeweb also joined IBD Leaderboard's Leaders list during Tuesday's bullish action. That makes the AI stock one of the best ideas to watch right now.
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