Tradeweb Markets stock is Monday's IBD 50 Growth Stocks To Watch as the financial markets player is building the right side of a cup base. The stock is attempting a sixth-straight day of increases as earnings loom.
Tradeweb Markets is a leading global operator of electronic marketplaces for credit, equities and money markets. It provides electronic trading access and data and analytics for more than 50 products to institutional, wholesale and retail financial markets. It operates in more than 70 countries.
Tradeweb is due to report second-quarter earnings on Thursday before the market open.
On June 20, Tradeweb announced organizational changes, including that its president, Thomas Pluta, will leave the company and its board of directors, effective Sept. 30. The stock rose modestly on the news, but seemed unaffected as it traded sideways in a cup base.
Tradeweb Markets Stock Builds Base
Tradeweb stock is in an early stage cup base with a 114.07 buy point, according to IBD MarketSurge analysis. The entry point is also the stock's all-time high, reached on May 10. The stock retook its 50-day moving average on Tuesday.
Shares broke out of a Stage one flat base on May 6, after the company released April total trading volume numbers. Its average daily volume jumped 69.1% compared with the same month in 2023. Shares climbed to the new high before pulling back May 10 and beginning a new cup base. The financial stock dropped below the 108.04 buy point of the prior Stage one flat base, thereby resetting the base count.
The relative strength line is higher as the stock builds the right side of the pattern, a positive sign. In addition, its earnings line has been ascending for several years without a downturn. The green line can be added to the weekly chart by a drop-down list in the wrench icon on MarketSurge.
Upcoming Profit Estimates Look Robust
Tradeweb reported adjusted first-quarter earnings that were in line with estimates but missed sales forecasts on April 25.
Financial markets analysts polled by FactSet predict earnings of 69 cents a share, a 33% gain from the prior year quarter. Over the last four quarters, earnings growth accelerated from 11% to 13% then on to 31% for each of the next two quarters.
Quarterly sales forecasts call for $408.4 million, or 31% growth over the year-ago period. This follows revenue growth of 5%, 14%, 26% and 24% over the last four quarters. Full-year 2024 estimates show profits rising 22% then 14% in 2025.
Consistent earnings growing is a strong point for Tradeweb with its near-perfect 98 IBD Earnings Per Share Rating. Tradeweb Markets also holds a 3 out of 99 possible Earnings Stability factor, with a lower number representing more stable earnings over the last three to five years.
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