Tradeweb Markets is the IBD Stock Of The Day as interest-rate uncertainty fuels high bond trading activity. On Friday, Tradeweb stock cleared an early entry while continuing to work on a traditional buy point.
Further, TW stock held above key support levels amid the current market sell-off, even as marquee names like Nvidia slumped.
Headquartered in New York City, Tradeweb builds and runs electronic marketplaces for fixed income, money markets and equities. It connects 3,000 institutional, retail and corporate clients globally.
In 2024, Tradeweb earnings per share and revenue both surged 29% to record levels. Average daily volume of trades over its systems reached more than $2.2 trillion for the full year, capped by a 36.7% surge in the fourth quarter. Adjusted EBITDA margin expanded by 91 basis points last year to reach 53.3%.
Tradeweb Stock Clears Early Entry, In Flat Base
Shares of Tradeweb Markets popped 3.3% to 135.37 in Friday's stock market action. Tradeweb stock is in a flat base with a 141.69 buy point, according to MarketSurge charts. It remains 4% below the trigger.
The Feb. 21 interim high of 134.85 offered an early handle entry, with shares topping it on Friday. IBD added TW stock to SwingTrader as it moved above that level.
Amid the recent volatility, shares have clung to the 21-day exponential moving average. The 21-day line is converged with the 50-day average, which the stock regained on Feb. 21 after a Q4 earnings beat.
The relative strength line, the blue line in the chart provided here, has returned to the consolidation peak. That is an especially bullish sign ahead of a stock's potential breakout.
The RS line shows a strong uptrend ever since this specialty financial services stock debuted in April 2019 as well. A rising RS line means that a stock is outperforming vs. the S&P 500 index.
An 82 RS Rating means Tradeweb has outpaced 82% of all stocks in IBD's database over the past year.
Fellow specialty financial services stock Fiserv earns a spot on the IBD Leaderboard. Fiserv stock made the Leaders list in February as it cleared a 223.23 buy point after an earnings beat.
Tradeweb Earnings And Outlook
The IBD Stock Checkup tool shows that TW stock carries a near-perfect Composite Rating of 98 out of99. IBD's Composite Rating rolls various fundamental and technical metrics into one easy-to-use score.
Tradeweb Markets holds an EPS Rating of 97 out of a best-possible 99.
Growth dipped in the fourth quarter, but Tradeweb still generated a 25% year-over-year jump in revenue to $463.3 million. Earnings climbed 19% to 76 cents per share.
For the first quarter of 2025, analysts expect the company to again deliver a 19% gain in earnings, this time to 84 cents a share. For the full year, forecasts call for 16.5% earnings growth to $3.40 per share.
"2024 was a banner year for Tradeweb, marking our 25th consecutive year of record annual revenues," Tradeweb CEO Billy Hult said in a Feb. 6 Q4 earnings release.
The year was capped by a strong final quarter aided by "a favorable market environment," Hult said. It included Fed rate cuts and the U.S. presidential election.
The quarter saw "ADV records across money markets and rates," Hult added. The Tradeweb chief touted new partnerships last quarter with Goldman Sachs and the Tokyo Stock Exchange.
But the average analyst target on TW stock has come down in February to $148.13, FactSet shows.
Bond Trading, Money Market Activity
Tradeweb benefits from long-term tailwinds as it gains market share in increasingly electronic bond markets, says Morningstar analyst Michael Miller. Tradeweb's interest-rate and credit segments are "the heart of the company," making up 79% of its revenue in 2024, he said.
With most fixed-income trading still primarily voice based, "Tradeweb has a long runway of growth ahead of it," he wrote in a Feb. 6 note. However, Miller's rating suggests Trade Web's stock price has gotten ahead of its valuation.
Over the past year, Tradeweb stock has surged almost 28%, including a 3% gain year to date.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
