Tradeweb Markets, Inc. (TW), a leading trading platform, reported record trading volume for September and a 68% year-over-year gain in average daily volume.
Tradeweb serves markets for rates, credit, money markets, and equities, along with pre-trade pricing and post-trade processing. TW built its business over the years with key acquisitions, equity expansion, and new products. It benefited last quarter from a favorable trading environment driven by equity market volatility.
Financially, TW’s September trading volume hit $56 trillion, with an average daily volume of $2.6 billion. And for the third quarter, the company had nearly $148 trillion in total volume, with an average daily volume of $2.2 trillion, which is a 55% year-over-year increase.
It’s no wonder TW shares are up 46% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.
Institutional volumes reveal plenty. In the last year, TW has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in TW shares. They reflect our proprietary inflow signal, pushing the stock higher:
Plenty of financials names are under accumulation right now. But there’s a powerful fundamental story happening with Tradeweb.
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, TW has had strong sales and earnings growth:
Source: FactSet
Also, EPS is estimated to ramp higher this year by +14.3%.
Now it makes sense why the stock has been powering to new heights. TW has a track record of strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
Tradeweb has been a top-rated stock at MAPsignals for a while. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when TW was a top pick…making shares rise:
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
The TW rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in TW at the time of publication.
If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.
Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.