Intercontinental Exchange, Inc. ICE is well-poised for growth on the back of a number of buyouts, compelling product portfolio and efficient capital deployment.
The company also has a decent history of beating estimates in the last four quarters with the average being 4.82%.
Intercontinental Exchange’s return on equity was 12.8% in the trailing 12-month period, higher than the industry average of 11.4%. Return on equity is a profitability measure that identifies a company’s efficiency in utilizing its shareholders’ funds.
A number of buyouts have not only led to growth of the company but also aided it to eliminate its expenses.
Intercontinental Exchange has been witnessing revenue growth on the back of strong global data services. It provides a variety of risk management services and has a compelling product portfolio, which continues to boost its revenues.
Banking on solid capital position, the company deploys capital effectively via dividends and share repurchases to enhance shareholder value.
The Zacks Consensus Estimate for 2019 and 2020 earnings per share is pegged at $3.89 and $4.22, indicating increase of nearly 8.3% and 8.4%, respectively from the year-ago reported figures.
However, total operating expenses have increased in the last five years due to product launches, technology upgrade as well as higher debt and integration expenses, capital and infrastructural costs, rebates and compensation and benefits expenses.
Also, a high debt level results in increase in interest expense, which weighs on margin expansion.
Nevertheless, shares of this Zacks Rank #3 (Hold) company have outperformed the industry year to date. The stock has gained 22.4% compared with the industry’s increase of 19.7%. Solid operational performance is expected to drive shares going forward.
Stocks to Consider
Some better-ranked stocks from the same space are QIWI PLC QIWI, Cardtronics PLC CATM and Global Payments Incorporation GPN. While QIWI and Cardtronics sport a Zacks Rank #1 (Strong Buy), Global Payments carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Qiwi operates electronic online payment systems through Payment Services, Consumer Financial Services, Small and Medium Enterprises and Rocketbank segments. The company beat earnings estimates in three of the last four reported quarters, the average being 72.30%.
Cardtronics provides automated consumer financial services through its network of automated teller machines and multi-function financial services kiosks. Its average four-quarter positive surprise is 28.80%.
Global Payments provides payment technology and software solutions for card, electronic, check, and digital-based payments. The company beat the Zacks Consensus Estimate in the trailing four quarters, the average being 2.42%.
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Cardtronics PLC (CATM) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
QIWI PLC (QIWI) : Free Stock Analysis Report
Global Payments Inc. (GPN) : Free Stock Analysis Report
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