Home Stock Nasdaq stock outlook as Q3 results edge expectations

Nasdaq stock outlook as Q3 results edge expectations


On Wednesday, Nasdaq Inc. (NASDAQ:NDAQ) shares advanced after announcing its most recent quarterly results. The company reported its fiscal Q3 revenue and earnings before markets opened edging consensus Street estimates. 

NDAQ posted FQ3 non-GAAP earnings per share of $1.78, outperforming the average for analyst expectations of $1.73. In addition, its GAAP EPS of $1.68 beat the Street forecast of $1.58, while revenue for the quarter increased by 17.2% to $838 million, $4.95 million ahead of estimates.

Moreover, Nasdaq declared a quarterly dividend per share of $0.54, payable on 17th December to shareholders of record on 3rd December. As a result, NDAQ shares trade at a forward yield of 1.03% as of this writing.

Nasdaq’s exciting growth 

Nasdaq shares trade at a reasonable forward P/E ratio of 27.69, thus making the stock an attractive option for value investors. However, more investors will be looking at its exciting growth prospects ahead of its valuation multiples.

The company earnings per share could grow by more than 20% this year, before rising at an average annual rate of about 15% over the next five years. Therefore, although the stock is up more than 58% this year, it could be a compelling option for long-term investors.

Source – TradingView

Technically, NDAQ shares seem to be trading within an ascending channel formation in the intraday chart, implying a bullish bias in the market sentiment. As a result, the stock has rallied to the overbought conditions of the 14-day RSI, creating an opportunity for a short-term pullback.

However, given its compelling valuation multiples and exciting growth prospects, NDAQ’s recent earnings beat could continue to drive the price higher. Therefore, investors could target extended gains at about $219, while $198.71 and $188.19 are crucial support levels.

Does NDAQ have room left to run?

In summary, although Nasdaq shares have rallied more than 58% this year, pushing the stock into overbought conditions, the company still offers exciting growth prospects at compelling valuation multiples. 

Therefore, given its fiscal Q3 revenue and earnings beat, the current bull run seems poised to continue.

The post Nasdaq stock outlook as Q3 results edge expectations appeared first on Invezz.

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