Nasdaq, Inc. NDAQ reported solid volumes for August 2019. While U.S. equity options volume increased 5.4% year over year to 157 million contracts, European options and futures volume rose 33.9% year over year to 7.5 million contracts.
Under its cash equities, Nasdaq’s U.S. matched equity volume in August grossed nearly 33 billion shares, up 20.3% year over year. European equity volume declined 7.4% year over year to $64 billion. While U.S. fixed income volume traded increased 10.8% year over year to $1.3 trillion, European fixed income volume improved 4.5% to 2.3 million contracts.
Nasdaq continues to witness growth in its index and analytics businesses, followed by moderate growth in exchange data products across U.S. and Nordic equities, options and fixed income businesses. The company is ramping up its non-transaction revenue base, which includes market technology, listing and information revenues. It is also expanding technology and analytics offerings. Nasdaq remains focused on core special marketplace platform businesses but intends to lower capital resources for investment in businesses that do not offer considerable growth for the company. The company carries a Zacks Rank #3 (Hold).
Shares of Nasdaq have gained 3.9% quarter to date, underperforming its industry's growth of 11.5%. Improving growth via organic means, strategic acquisitions, healthy balance sheet and cash position along with modest operating cash flow and effective capital deployment should help the stock move higher than the industry.
Recently, CME Group CME reported solid volumes for the same month. Average daily volume (“ADV”) of 24.3 million contracts in August 2019 increased 53% year over year. This marked the second-highest monthly ADV.
Stocks to Consider
Some better-ranked stocks from the finance sector are Cboe Global Markets CBOE and CNA Financial CNA, each carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cboe Global is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. The company came up with positive surprise of 5.61% in the last reported quarter.
CNA Financial provides commercial property and casualty insurance products, primarily in the United States. The company came up with positive surprise of 6.93% in the last reported quarter.
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CNA Financial Corporation (CNA) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
CME Group Inc. (CME) : Free Stock Analysis Report
Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report
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