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New York-based Nasdaq, Inc. (NDAQ) operates as a leading provider of trading, clearing, marketplace technology, securities listing, information, and other services. With a market cap of $55.6 billion, Nasdaq operates through Capital Access Platforms, Financial Technology, and Market Services segments.
The company has significantly outperformed the broader market over the past year. NDAQ stock has soared 42.3% over the past 52 weeks and 25.3% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 20.1% surge over the past year and 8.6% returns on a YTD basis.
Narrowing the focus, Nasdaq has also outperformed the Financial Select Sector SPDR Fund’s (XLF) 22.8% gains over the past year and 7.3% returns on a YTD basis.
Nasdaq’s stock prices surged 5.9% in the trading session following the release of its impressive Q2 results on Jul. 24. Driven by solid organic growth, the company’s revenues net of transaction expenses surged 12.7% year-over-year to $1.3 billion, beating the consensus estimates by a notable margin. Furthermore, driven by continued improvement in margins, its non-GAAP net earnings for the quarter grew 23.9% year-over-year to $492 million, and adjusted EPS of $0.85, surpassed the Street’s expectations by 6.3%.
For the full fiscal 2025, ending in December, analysts expect NDAQ to deliver an adjusted EPS of $3.30, up 17% year-over-year. The company has a solid earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
The stock has a consensus “Strong Buy” rating overall. Of the 20 analysts covering the stock, opinions include 13 “Strong Buys,” three “Moderate Buys,” and four “Holds.”
This configuration is slightly more optimistic than a month ago, when 12 analysts gave “Strong Buy” recommendations and the stock had a consensus “Moderate Buy” rating overall.
On Aug. 4, Piper Sandler analyst Richard Repetto maintained an “Overweight” rating and raised the price target from $97 to $104.
NDAQ’s mean price target of $103.17 represents a 6.5% premium to current price levels. Meanwhile, the street-high target of $115 suggests a notable upside potential of 18.7%.
