Tradeweb’s Growing Business Sees Shares Rise

Tradeweb handles markets for rates, credit, money markets, and equities, along with providing related pre-trade pricing and post-trade processing services. After its start primarily in bond trading, TW now serves investors of all kinds and has built on its offerings and overall strength through some key recent acquisitions, equity expansion, and new products.

On the financial front, TW’s second-quarter earnings announcement revealed a 30.4% increase in year-over-year revenue, its best second quarter ever. Client activity and share gains picked up too, with rates and credit generating 61% and 29% of revenue growth, respectively.

It’s no wonder TW shares are up 28% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money’s Bonding to Tradeweb

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.

Tradeweb Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, TW has had strong sales and earnings growth:

• 3-year sales growth rate (+14.5%)
• 3-year EPS growth rate (+23.6%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +14.4%.

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 the stock soar:

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.

Tradeweb Price Prediction

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.