Trade-Ideas: MarketAxess Holdings (MKTX) Is Today's New Lifetime High Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified MarketAxess Holdings as such a stock due to the following factors:
- MKTX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.9 million.
- MKTX has traded 3,225 shares today.
- MKTX is trading at a new lifetime high.
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More details on MKTX:
MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments worldwide. The stock currently has a dividend yield of 0.9%. MKTX has a PE ratio of 43.3. Currently there is 1 analyst that rates MarketAxess Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for MarketAxess Holdings has been 172,200 shares per day over the past 30 days. MarketAxess has a market cap of $3.2 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.54 and a short float of 2% with 3.95 days to cover. Shares are up 17.9% year-to-date as of the close of trading on Tuesday.
Analysis:
rates MarketAxess Holdings as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.4%. Since the same quarter one year prior, revenues rose by 16.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Diversified Financial Services industry and the overall market, MARKETAXESS HOLDINGS INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- The gross profit margin for MARKETAXESS HOLDINGS INC is rather high; currently it is at 54.03%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 30.83% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 75.63% to $41.36 million when compared to the same quarter last year. In addition, MARKETAXESS HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of 12.72%.
- You can view the full MarketAxess Holdings Ratings Report.
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