From NASDAQ.: 2024-06-28 10:59:00

Nasdaq’s NDAQ impressive organic growth, on-trading revenue base, and strategic buyouts make it worth holding in one’s portfolio. With positive earnings growth and beating estimates, the stock has gained 3.5% year to date, outperforming the industry’s rise of 0.2%.

Nasdaq’s efficiency in utilizing funds is reflected in its 17% return on equity, higher than the industry average. Return on invested capital has stayed around 10% over the last few years, with steady capital investment boosting income generation.

Nasdaq’s growth strategy focuses on Market Technology and Investment Intelligence segments, with estimates of 5-7% long-term growth from a non-trading revenue base. Inorganic growth through acquisitions, like the Adenza Group, has strengthened market offerings and positioned the company for further expansion.

Nasdaq’s investment in cryptocurrency markets and SaaS solutions align with market opportunities. The company’s anti-financial crime space innovations are expected to witness a CAGR of 17% through 2024, with a goal of achieving 40-50% SaaS revenues by 2025.

Nasdaq’s steady dividend increase and share repurchase program enhance wealth distribution to investors. With solid earnings and free cash flow conversion, the company aims to achieve a dividend payout ratio of 35-38% by 2027.

Coinbase Global, HCI Group, Inc., and Palomar Holdings are better-ranked stocks in the finance sector, each holding a Zacks Rank #1 (Strong Buy). These stocks have shown solid earnings growth and stock price performance, making them attractive options for investors.

Read more at Nasdaq MarketSite.: Here’s Why You Should Retain Nasdaq (NDAQ) in Your Portfolio