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Atlanta-based Intercontinental Exchange, Inc. (ICE) engages in the provision of market infrastructure, data services, and technology solutions for institutions, corporations, and government entities. With a market cap of $98.6 billion, ICE operates through Exchanges, Fixed Income and Data Services, and Mortgage Technology segments.
Companies worth $10 billion or more are generally described as “large-cap stock,” and ICE fits the bill perfectly. Given the company operates as a leading global operator of securities exchanges and clearing houses, its valuation above this mark is unsurprising.
ICE stock recently touched its all-time high of $175.41 on Mar. 3 and is currently trading 3.3% below that peak. ICE has soared 8.8% over the past three months, significantly outperforming the Nasdaq Composite’s ($NASX) 9% decline during the same time frame.
Over the longer term, ICE’s performance looks even more impressive. ICE stock has surged 21.7% over the past 52-week period, outperforming NASX’s 12.7% gains during the same time frame.
To confirm the bullish trend, ICE stock has traded mostly above its upward-sloping 200-day moving average over the past year and consistently above its 50-day moving average since mid-January.
Intercontinental Exchange’s stock prices soared over 4.3% after the release of its robust Q4 results on Feb. 6. Driven by its strong underlying business model, the company has continued to post record revenues for 19 consecutive years. In Q4, its topline grew by an impressive 13.7% compared to the year-ago quarter over $3 billion, exceeding the Street’s expectations. Meanwhile, the company showcased impressive expense discipline leading to a solid 16.4% year-over-year growth in operating income to $1.1 billion. ICE’s adjusted net income for the quarter jumped 15.1% year-over-year to $875 million and its adjusted EPS of $1.52 surpassed the consensus estimates by 2%, which boosted investor confidence.
Intercontinental Exchange has also outperformed its peer CME Group Inc.’s (CME) 15.6% gains over the past 52 weeks.
Furthermore, the stock has a consensus “Strong Buy” rating, among the 17 analysts covering it. ICE’s mean price target of $190.31 suggests a 12.2% upside potential from current price levels.
