Over the last six months, Tradeweb Markets’s shares have sunk to $108.05, producing a disappointing 18.6% loss - a stark contrast to the S&P 500’s 27.3% gain. This was partly due to its softer quarterly results and might have investors contemplating their next move.
Following the drawdown, is this a buying opportunity for TW? Find out in our full research report, it’s free for active Edge members.
Why Is Tradeweb Markets a Good Business?
Founded in 1996 as one of the pioneers in electronic bond trading, Tradeweb Markets (NASDAQ: TW) builds and operates electronic marketplaces that connect financial institutions for trading across rates, credit, equities, and money markets.
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
Luckily, Tradeweb Markets’s revenue grew at an excellent 18% compounded annual growth rate over the last five years. Its growth beat the average financials company and shows its offerings resonate with customers.
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Tradeweb Markets’s EPS grew at an astounding 26.1% compounded annual growth rate over the last five years, higher than its 18% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Final Judgment
These are just a few reasons why Tradeweb Markets is one of the best financials companies out there. With the recent decline, the stock trades at 30.3× forward P/E (or $108.05 per share). Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More Than Tradeweb Markets
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