Nasdaq NDAQ reported mixed volumes for May 2021. While U.S. equity options volume increased 36.5% year over year to 247 million contracts, European options and futures volume dropped 1.9% year over year to 15.3 million contracts. Shares gained 1.5% in the last trading session.
Under its cash equities, Nasdaq’s U.S. matched equity volume grossed about 36.5 billion shares, down 9.3% from the prior-year period. European equity volume increased 25.8% year over year to $100.8 billion.
Under fixed income commodities, U.S. Fixed income volumes traded were $566 billion, up 40.8%. European fixed income volume increased 389% to 2.5 million contracts.
Nasdaq aims for long-term growth by banking on organic means. It expects growth from its index and analytics businesses followed by moderate growth in its exchange data products across U.S. and Nordic equities, options and fixed income businesses, driven by a widespread client base. It targets 5% to 8% of revenues generated from new trading offerings and products by 2025.
Shares of this Zacks Rank #2 (Buy) provider of trading, clearing, marketplace technology, regulatory, securities listing, information and public and private company services have gained 25.7% year to date compared with the industry’s growth of 5.1%. Significant and leading positions in large, high-growth markets like Index, Analytics, Market Technology, and IR & ESG Services and a solid capital position should help it retain the momentum.
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Nasdaq’s growth has also been boosted by the strategy of accelerating its non-trading revenue base, which includes market technology, listing and information revenues. Nasdaq estimates 5%-8% revenue organic growth at Investment Intelligence, 8%-11% at Market Technology and 3%-5% at Corporate Platforms over the medium term.
Recently, MarketAxess Holdings MKTX reported May volumes of $478.7 billion, consisting of $204.4 billion in credit volume and $274.3 billion in rates volume. CME Group CME reported ADV of 20.6 million contracts for May. ADV increased 15%, attributable to higher volumes across all five product lines.
Another Stock to Consider
Another top-ranked stock from the same space is OTC Markets Group OTCM, carrying a Zacks Rank #2. It delivered 46.15% earnings surprise in the last reported quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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