With market indexes and growth stocks under pressure, investors should proceed with caution, heeding the principles of risk management. But while simultaneously following rules for how to buy and when to sell stocks, investors should keep an eye on companies like leading fintech Tradeweb Markets (TW), which just made the IBD Breakout Stocks Index and could be ready to climb when the weather clears.

As marquee names like Nvidia (NVDA) — which reports earnings on Wednesday after the close — and Alphabet (GOOGL) retreat further below their 50-day moving averages, Tradeweb stock has maintained support at that benchmark as it continues to build a new base — one that has flashed a positive, telltale clue.

Tradeweb In Demand Among A+ Funds

Headquartered in New York City, Tradeweb builds and operates electronic marketplaces for stocks, money markets and more. The company has more than 3,000 institutional, wholesale, retail and corporate treasury clients around the world.

Sporting a strong 98 Composite Rating, Tradeweb ranks among the top-rated stocks in the specialty financial services industry. The group — which includes peers like Marex (MRX), Sezzle (SEZL), Qifu Technology (QFIN) and Corpay (CPAY) — ranks No. 29 out of the 197 industries tracked by Investor's Business Daily.

While Tradeweb did not join Google stock or industry peers like Corpay, Coinbase (COIN) and Sezzle on the latest list of new buys by the best mutual funds, it has shown clear signs of institutional demand. The stock has seen six quarters of rising fund ownership. Plus, 91 funds with an A+ rating from Investor's Business Daily have a position in Tradeweb stock.

Growth dipped in the fourth quarter, but Tradeweb still generated a 25% year-over-year jump in revenue to $463.3 million. Earnings climbed 19% to 76 cents per share.

For the first quarter of 2025, analysts expect the company to again deliver a 19% gain in earnings, this time to 84 cents a share. For the full year, forecasts call for 16% earnings growth to $3.40 per share.

See Who Joins Tradeweb On The IBD Breakout Stocks Index

Tradeweb Stock Resets Base Count

Continuing to work on a flat base with a 141.69 buy point, Tradeweb stock recently reset its base count by undercutting the low in its prior pattern. Such action acts as a refresher for a stock and could bode well for Tradeweb if the market indexes gain strength.

By comparison, both Nvidia stock and Google have wrestled with late-stage bases in recent months. Such patterns entail more risk since by the time they form, a stock has already made a major move. Late-stage bases also tend to experience more volatility, which has been the case for Nvidia and Google. On Tuesday, both Magnificent Seven stocks even retreated to test support at their 200-day lines.

While the fresh reset for Tradeweb is positive, the fintech stock is not immune to pressures in the general market. After popping back above its 50-day line on Friday, Tradeweb has pulled back to test support — so far successfully — at that benchmark.

Investors should watch to see if Tradeweb stock can hold that line and climb toward a new breakout. And as the relative strength lines for Nvidia and Alphabet pull back, investors should see if Tradeweb's RS line closes in on a 52-week high to show market-leading strength.

IBD Breakout Opportunities ETF

The IBD Breakout Opportunities (BOUT) exchange traded fund from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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