Nasdaq’s Strong Performance Outpaces Market Despite Mixed Earnings Outlook
Nasdaq, Inc. (NDAQ), based in New York, is a technology giant serving capital markets and other industries. The company holds a market cap of $45.9 billion and delivers a wide array of services, including trading, clearing, exchange technology, regulatory support, securities listing, analytics, investment tools, and financial information services.
Over the past year, NDAQ shares have significantly outperformed the broader market, gaining 47% compared to a nearly 32.3% increase in the S&P 500 Index ($SPX). In 2024 alone, NDAQ has seen a rise of 34.3%, outperforming SPX’s 24.7% year-to-date growth.
However, when looking at the SPDR S&P Capital Markets ETF (KCE), NDAQ remains behind, with KCE delivering returns of 62.1% over the past year and a 40% rise in 2024.
After reporting its October trading volumes on November 4, NDAQ stocks rose by 1.8% in the following trading session.
On July 25, shares closed up more than 7% post-Q2 results disclosure, where the adjusted EPS came in at $0.69, exceeding Wall Street’s estimate of $0.64. The total revenue hit $1.79 billion, and adjusted revenue stood at $1.16 billion, surpassing the forecast of $1.13 billion.
Looking ahead to the current fiscal year ending in December, analysts predict a slight decline in NDAQ’s EPS by 1.4% to $2.78 on a diluted basis. The company has had a mixed earnings report history, beating consensus estimates three times in the last four quarters while falling short once.
Among the 19 analysts tracking NDAQ stock, the consensus rating is a “Moderate Buy,” which includes eight “Strong Buy” ratings, four “Moderate Buy” ratings, and seven “Hold” recommendations.
This assessment reflects a more optimistic outlook compared to three months ago when only seven analysts had provided a “Strong Buy” rating.
On November 11, Deutsche Bank Aktiengesellschaft (DB) analyst Brian Bedell raised Nasdaq’s price target from $78 to $80 while maintaining a “Hold” rating. This adjustment came after the U.S. elections, with the bank expecting a favorable environment for capital markets through at least 2025, predicting steady gains in equity markets due to fiscal stimulus and possibly reduced regulation.
The average price target of $82.78 indicates a 6% premium over the current price of NDAQ stocks. The highest price target, set at $93, suggests there is a potential upside of 19.1%.
On the date of publication, Kritika Sarmah 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
