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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 $41.8 billion by market cap, the company provides trading, clearing, exchange technology, regulatory, securities listing, analysis, investing tools and guides, and 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 and 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 1.7% from its 52-week high of $74.17, achieved on Sep. 4. Over the past three months, NDAQ stock has gained 23.6%, outperforming the Nasdaq Composite’s ($NASX) 1.6% dip during the same time frame.
In the longer term, shares of NDAQ rose 25.4% on a YTD basis and climbed 42.9% over the past 52 weeks, outperforming NASX’s YTD gains of 17.1% and solid 28.2% returns over the last year.
To confirm the bullish trend, NDAQ has been trading above its 50-day moving average since early July. It is trading above its 200-day moving average since November 2023.
NDAQ's strong performance can be credited to its strategic acquisition of Adenza for $10.5 billion in 2023, which bolstered its financial technology segment, making it a key player in combating fraud and money laundering for banking customers.
Furthermore, NDAQ's position as a leading destination for IPOs showcases its dominance in the financial industry. The increasing international demand for Verafin's anti-financial crime solutions, as well as the positive impact from acquisitions like AxiomSL and Calypso, have also played a significant role in driving NDAQ's impressive price performance.
On Sep. 4, NDAQ shares closed up more than 2% after Bank of America Global Research double-upgraded the stock to “Buy” from “Underperform” with a price target of $90.
In the competitive arena of financial data and stock exchanges, Intercontinental Exchange, Inc. (ICE) has taken the lead over NDAQ, showing resilience with a 25.5% uptick on a YTD basis. However, ICE shares lagged behind the stock with 39.1% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on NDAQ’s prospects. The stock has a consensus “Moderate Buy” rating from the 16 analysts covering it, and the mean price target of $74.80 suggests a potential upside of 2.6% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
