Marex Group rallied Wednesday after the firm provided preliminary first-quarter results during its investor day in New York. The financial stock has more than doubled since its IPO less than one year ago.
The London-based trading services firm estimated Q1 revenue of $449.3 million to $464.3 million. That would be an increase of 23% to 27% from the year-ago total of $365.8 million. Marex now estimates adjusted earnings per share of 88 to 93 cents, or an increase of 27.5% to 35% from the 69 cents in the first quarter of 2024.
The provider of trading and financial services for commodity and other financial markets saw a strong start to the year thanks to high levels of trading volumes amid volatile markets.
Gold and copper prices have jumped to record highs, while other commodities such as crude oil have fluctuated on tariff and geopolitical worries.
"Very robust levels of client activity across our businesses and positive market conditions have continued into 2025 and led to a strong performance in the first quarter of the year, building on our performance in 2024," CEO Ian Lowitt said in a statement.
This activity more than offset the impact of lower net interest income compared with the fourth quarter of 2024.
Marex Is A New Issue
Marex Group went public on the Nasdaq less than a year ago, and it's already a stock market leader, boasting the highest EPS Rating of more than 70 companies in the specialty financial services industry group. The group ranks high, No. 32 out of the 197 groups tracked by IBD. The group is a mix of trading firms, "buy now, pay later" providers, consumer finance firms and other financial services players.
Marex went public on April 25, 2024, with an IPO that sold more than 15 million shares priced at $19 each.
On the first day of trading, Marex shares closed at 18.99, according to IBD MarketSurge. Trading remained muted for the first few weeks, then the stock climbed as much as 110% from the initial public offering to a peak on Feb. 20.
The financial stock midday Wednesday rallied nearly 7% in heavy trading and is back above its 50-day moving average. Shares have not completed a valid base but closed above the 50-day average Tuesday around 35.30. While that could technically be treated as a buy area, remember that it's best to avoid purchases while the stock market is weak.
That means investors should be patient and for now keep Marex on a watchlist. One alternative for investors is to wait until Marex stock forms a base, and wait for a breakout above a likely buy point at 40.05, the prior high.
The stock's relative strength line already is making new highs, which bodes well for future stock action.
Financial Stock Boasts Solid EPS, Revenue Growth
Marex, which has more than 40 offices worldwide, has a three-year EPS growth rate of 59%, averaging more than 45% growth the past three quarters, according to IBD Stock Checkup. Its three-year revenue sales growth rate is 48%.
The financial stock has a 21-day average true range (ATR) of 5.54%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior.
Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs. In the current, unpredictable market, IBD suggests stocks with ATRs of 3% or below.
