Nasdaq, Inc. reported strong free cash flow and FCF margins in Q4, with revenue up 13% in 2025. Despite this, NDAQ stock has dropped 14% since the release of its Q4 results, currently trading at $84.17. Analysts forecast revenue to increase in 2026 and 2027, potentially leading to a higher FCF of $2.288 billion.

To take advantage of the undervaluation, investors can consider shorting out-of-the-money put options on NDAQ stock. For example, selling the March 20, 2026 $80.00 strike put option can provide a 2.0% yield. This strategy allows investors to potentially set a lower buy-in price for NDAQ stock while earning a high yield in the process.

Read more at Barchart: Nasdaq, Inc. Stock Is Off Its Highs, Despite Strong Results