Nasdaq, Inc. is a global technology company specialising in exchange services that facilitate the listing, trading, and clearing of various securities across multiple asset classes.
The company's Nasdaq Stock Exchange (based in the US) is one of the largest in the world, with around 4 200 total listings. These include the likes of Apple, Amazon, Microsoft, and Google, among various other tech giants.
Other product offerings include information and regulatory services, as well as the provision of investment education and analysis.
Technically, the price is above a key support level and is persistently making "higher lows" (see the black trendline on the main chart as well as the insert). This suggests that buyers are actively purchasing the stock at higher prices compared to previous periods. This makes the stock an attractive investment option.
The stock is currently trading below its 200-day simple moving average (SMA); however, we expect the price to return to its long-run equilibrium of ~$59. This implies that our trade is following a counter-trend strategy.
Fading downside momentum according to the Moving Average Convergence Divergence (MACD) indicator, as well as upwards movement of the On-balance Volume (OBV) indicator, supports our bullish stance.
Share Information
| Share code | NDAQ US |
|---|---|
| Industry | Financial Services |
| Market Capital (USD) | 27.28 billion |
| One year total return | 9.21% |
| Return year-to-date | -9.06% |
| Current price(USD) | 55.58 |
| 52 weeek high(USD) | 69.22 |
| 52 week low(USD) | 48.06 |
| Financial year end | December |
| Closing paragraph | The stock has performed well over the past year but has come under pressure in recent months amid market uncertainty. |
Consensus Expectations (Bloomberg)
| FY22 | FY23E | FY24E | FY25E | |
|---|---|---|---|---|
| Headline Earnings per Share (GBP) | 2.66 | 2.72 | 2.89 | 3.13 |
| Growth (%) | 2.14 | 6.51 | 8.05 | |
| Dividend Per Share (GBP) | 0.78 | 0.86 | 0.92 | 1.00 |
| Growth (%) | - | 9.62 | 7.84 | 8.03 |
| Forward PE (times) | 20.46 | 19.21 | 17.77 | |
| Forward Dividend Yield (%) | - | 1.54 | 1.66 | 1.79 |
| Closing paragraph | Bottom-line growth is expected to recover steadily over the medium-term. | |||
Buy/Sell Rationale
Technical Analysis:
Fundamental view:
| Share Name and position | NCLH - Buy (Continue to hold) | STZ - Buy (Continue to hold) | HACK - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 14.47 | 228.16 | 47.58 |
| Current | 15.51 | 242.70 | 49.07 |
| Movement | 7.2% | 6.4% | 3.1% |
| Summary text |
The stock is experiencing limited volatility and remains within a narrow trading range. The 23.6% Fibonacci retracement level could serve as a significant support level. Upward momentum supports the bullish trend.
Our profit target is $18 with a trailing stop-loss of $14. Exit the position on 19 July 2023 |
A bullish megaphone pattern remains of interest. The stock is just above its 200-day simple moving average. Upside price momentum supports the bullish trend.
Our profit target is $252 with a trailing stop-loss of $233. Exit the position on 21 June 2023. |
The price remains above key support levels. The stock is trading above its 200-day simple moving average, with upside price momentum supporting the bullish trend.
Our profit target is $55 with a trailing stop-loss of $47.10. Exit the position around 4 August 2023 |
| Share Name and position | COST - Buy (Continue to hold) | HLMN - Buy (Continue to hold) | VXF - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 501.27 | 8.01 | 139.26 |
| Current | 512.60 | 8.11 | 139.29 |
| Movement | 2.3% | 1.2% | 0% |
| Summary text |
We continue to observe a confluence of technical indicators that aligns with the bullish trend. The share is trading above its 200-day simple moving average. Upside price momentum supports a bullish bias.
Our profit target is $560, with a trailing stop-loss of $490. Exit the position around 7 July 2023. |
The price continues to display repetitive cycles in sequences. The stock is testing its 200-day simple moving average, which is also its 23.6% Fibonacci retracement level. Fading downside momentum supports the trade.
Our profit target is $10 with a trailing stop-loss at $7.50. Exit the position on 6 October 2023 |
An incomplete symmetrical triangle pattern is of interest. The ETF is testing its 200-day simple moving average. Fading downside momentum supports the bullish trend.
Our profit target is $153 with a stop-loss at $134. Exit the position on 2 November 2023 |
