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New York-based Nasdaq, Inc. (NDAQ) operates as a technology company that serves capital markets and other industries worldwide. Valued at $49.5 billion by market cap, the company provides trading, clearing, exchange technology, regulatory, securities listing, analysis, investing tools and guides, financial, and information services.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and NDAQ perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the financial data & stock exchanges industry. Nasdaq's diversified business model drives robust financial performance, fueled by successful expansions beyond traditional exchange services.
Despite its notable strength, NDAQ slipped 14% from its 52-week high of $101.79, achieved on Jan. 16. Over the past three months, NDAQ stock has declined marginally, underperforming the State Street Financial Select Sector SPDR ETF’s (XLF) 4.2% gains during the same time frame.
Shares of NDAQ fell 9.9% on a YTD basis but climbed 2.2% over the past 52 weeks, underperforming XLF’s YTD losses of 4.2% and 2.9% returns over the last year.
To confirm the bearish trend, NDAQ has been trading below its 200-day moving average since early February, with slight fluctuations. The stock has been trading below its 50-day moving average recently, with minor fluctuations.
On Apr. 23, NDAQ shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $0.96 exceeded Wall Street expectations of $0.93. The company’s net revenue was $1.41 billion, topping Wall Street forecasts of $1.37 billion.
In the competitive arena of financial data & stock exchanges, Intercontinental Exchange, Inc. (ICE) has lagged behind NDAQ, with a 12.6% downtick on a YTD basis and 19.6% losses over the past 52 weeks.
Wall Street analysts are bullish on NDAQ’s prospects. The stock has a consensus “Strong Buy” rating from the 19 analysts covering it, and the mean price target of $109.18 suggests a potential upside of 24.7% from current price levels.
