Tradeweb (TW) Moves 6.9% Higher: Will This Strength Last?
Tradeweb Markets (TW) shares ended the last trading session 6.9% higher at $95.10. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4% loss over the past four weeks.
Tradeweb Markets reported impressive total trading volume numbers for December 2023. The company recorded a 43.3% jump in average daily volume (ADV) in the month. Also, for 2023, ADV grew 27.6%.
Billy Hult, Tradeweb Markets CEO, stated “Historic interest rate moves, geopolitical uncertainty and ongoing market volatility helped drive a 2023 resurgence in fixed income. Despite a challenging start to the year, we reported a 27.6% YoY increase in average daily volume for the full year and broke numerous volume records across rates, credit, equities and money markets.”
This solid performance turned the investors bullish on the stock, driving it higher.
This electronic marketplaces operator is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of +16.3%. Revenues are expected to be $339.59 million, up 15.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Tradeweb, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TW going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Tradeweb is part of the Zacks Financial - Investment Bank industry. BGC Group (BGC), another stock in the same industry, closed the last trading session 1.6% lower at $6.65. BGC has returned 6.3% in the past month.
BGC Group's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20. Compared to the company's year-ago EPS, this represents a change of +25%. BGC Group currently boasts a Zacks Rank of #3 (Hold).
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