MarketAxess (MKTX) Moves 7.5% Higher: Will This Strength Last?
MarketAxess (MKTX) shares soared 7.5% in the last trading session to close at $273.94. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.4% gain over the past four weeks.
MarketAxess' recent price improvement stems from investor optimism around its strong trading volume growth. The company reported strong performance for the third quarter and September, particularly in key segments like U.S. high-grade, emerging markets, Eurobonds and municipal bonds ADV. Improved market volatility due to the Fed rate cut and growing market share further enhances the company’s potential to exceed earnings estimates in the third quarter.
Additionally, the continued rollout of the X-Pro platform to MarketAxess’ global client base is expected to broaden its market reach and support the company’s high-touch trading strategy, further reinforcing investor confidence in its potential to capture new business opportunities.
This operator of bond trading platforms is expected to post quarterly earnings of $1.64 per share in its upcoming report, which represents a year-over-year change of +12.3%. Revenues are expected to be $195.66 million, up 13.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For MarketAxess, 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 MKTX 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 >>>>
MarketAxess belongs to the Zacks Securities and Exchanges industry. Another stock from the same industry, CBOE Global (CBOE), closed the last trading session 0.8% lower at $210.15. Over the past month, CBOE has returned 0.7%.
CBOE's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.14. Compared to the company's year-ago EPS, this represents a change of +3.9%. CBOE currently boasts a Zacks Rank of #3 (Hold).
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