Wednesday's IBD 50 Stocks To Watch pick, Tradeweb Markets, is breaking out past its latest buy point this week. That makes the financial AI stock one of the best stocks to watch right now.
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 systemic trading systems.
Originally conceived as an efficiency tool to free up traders' time by automating orders that are mostly algorithmic and electronic, AiEX has evolved into 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.
In its latest quarter, Tradeweb reported earnings of 71 cents a share on revenue of $408.7 million — respective year-over-year increases of 31% and 24%.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
AI Stock Breaks Out
Tradeweb stock is trading in a buy range from a 108.04 buy point in a flat base, according to IBD MarketSurge chart analysis, following Monday's breakout. The 5% buy area goes up 113.44. Shares dropped 0.5% midday Wednesday, holding above the entry.
Remember, IBD's equity exposure range sits at 40%-60%, so investors have the flexibility to raise exposure as leading stocks break out past correct buy points.
Tradeweb stock boasts a near-perfect 98 IBD Composite Rating, according to IBD Stock Checkup, due to a strong record of profitability and strong stock gains in recent months. That makes the AI stock one of the best stocks to watch.
Another big positive is the stock's relative strength line. The RS line is just off new highs and at new highs for the duration of the 10-week base. That's an indicator of strong stock market outperformance and investors should take note.
Best Stocks To Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Texas Roadhouse | 157.12 | Flat base | |
| Procept BioRobotics | 52.32 | Flat base | |
| Interactive Brokers | 112.50 | Tight area |
Source: IBD Data As Of May 8, 2024
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
