Tradeweb is an electronic trading platform that serves markets for rates, credit, money markets, and equities, along with pre-trade pricing and post-trade processing. TW has grown over the years to serve more customers and markets, and it shows up in the increasing trading volumes. The company is eyeing more too as it integrates multiple acquisitions into the fold.
On the earnings front, TW’s fourth-quarter fiscal 2024 earnings showed a record 25.2% revenue gain in the quarter, which is the best in company history. The growth was attributed to deepening client relationships and the string of acquisitions. Total trading revenues jumped 26%, with international revenue making up about 40% of that figure. And with $1.3 billion on hand, the company is likely looking to grow more.
It’s no wonder TW shares are up nearly 28% in a year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.
Institutional volumes reveal plenty. In the last year, TW has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in TW shares. They reflect our proprietary inflow signal, pushing the stock higher:
Plenty of financials names are under accumulation right now. But there’s a powerful fundamental story happening with Tradeweb.
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, TW has had strong sales and earnings growth:
Source: FactSet
Also, EPS is estimated to ramp higher this year by +13.4%.
Now it makes sense why the stock has been powering to new heights. TW has a track record of strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
Tradeweb has been a top-rated stock at MAPsignals for a while. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when TW was a top pick…making shares rise:
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
The TW rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in TW at the time of publication.
If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.
This article was originally posted on FX Empire
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