Tradeweb Markets has deep roots in world's equities markets. On Tuesday, Tradeweb stock passed a significant milestone as its Relative Strength Rating rose to 80, up 10 points from 70 the day before. Market research shows that stocks that go on to make the biggest gains tend to have an RS Rating north of 80 in the early stages of their moves. Additionally, it's just completed a cup-with-handle base on a daily chart.
Tradeweb Stock Rises Into Top Tier
The 80 RS Rating means that Tradeweb stock is in the top 20% of all stocks for price performance over the past 12 months.
Tradeweb builds and operates electronic securities markets globally. It partners with companies such as wealth manager BlackRock, Bloomberg and MarketAxess. It was one of four companies that in 2016 launched the Electronic Debt Markets Association Europe (EDMA Europe). Additionally, it was the first offshore trading company to partner with China's Foreign Exchange Trade System. That enabled outside investors for the first time to invest in the China Interbank Bond Market.
Among its other major ratings, Tradeweb has a terrific 95 Earnings Per Share Rating, out of 99. The 95 rating puts New York City-based Tradeweb Markets in the top 5% of all stocks for recent and long-term profit growth. It also sports a 90 Composite Rating and a B SMR Rating (sales + profit margins + return on equity). One yellow flag to note; Tradeweb stock has a C- Accumulation/Distribution Rating on an A+ to E scale, showing that mutual funds and other institutional investors are collectively selling slightly more shares than buying.
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Cup With Handle Nearly Complete
Tradeweb stock appears to be completing a cup-with-handle pattern. Keep an eye on it to see whether it's able to capitalize on that base and break out. On Tuesday, Tradeweb Markets fell nearly 1.8% in sync with market consolidation.
The company reported 13% EPS growth in the latest quarterly report, to 54 cents per share. The small-cap company's sales grew 6% to $329.3 million.
Tradeweb stock holds the No. 9 rank among its peers in the Financial Services-Specialty industry group. Cboe Global Markets and International Money Express are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique Relative Strength Rating measures market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks matches up against that of all other stocks.
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