Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Intercontinental Up On Initiatives & Solid Capital Position

By Zacks Investment ResearchStock MarketsMar 09, 2020 10:28PM ET
www.investing.com/analysis/intercontinental-up-on-initiatives--solid-capital-position-200514750
Intercontinental Up On Initiatives & Solid Capital Position
By Zacks Investment Research   |  Mar 09, 2020 10:28PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Intercontinental Exchange, Inc. (NYSE:ICE) is currently riding on actions intended to upgrade the product portfolio and a solid capital position.

The company has a decent surprise history. It surpassed estimates in three of the trailing four quarters, the average positive surprise being 4.3%. The Zacks Consensus Estimate for current-quarter earnings has been revised 1.9% upward over the past 30 days.

Factors Driving Intercontinental Exchange

The company continues to benefit from a solid product portfolio equipped with a wide variety of risk management services. As a result, revenues have witnessed a CAGR of 9.3% in the last five years (2014-2019). Revenues are also likely to benefit from existing strength in global data services.

Intercontinental Exchange reported strong volume growth for February. Average daily volumes (ADV) in the month increased 39% to 7.6 million, largely backed by improved Financial ADV, Commodities ADV and Energy ADV.

Furthermore, Intercontinental Exchange is on track to enhance its product portfolio on a continual basis. Last month, the company revealed plans to extend ties with S&P Global (NYSE:SPGI) Platts for introducing a version of its market data platform. The platform — ICE Connect — is aimed at improving the risk management capabilities of customers. Also, it announced plans in January to launch a data service in the second half of 2020, intended to assist investors in assessing environmental, social and governance (ESG) risks.

Intercontinental Exchange also enjoys a robust capital position. Evidently, the company’s operating cash flow witnessed a CAGR of 12.9% in the last two years (2017-2019). The metric also improved 5% year over year in 2019 on the back of operational excellence. Notably, it generated free cash flow of $2.3 billion in 2019 and returned more than 90% of that cash to shareholders via dividends and share repurchases.

However, elevated operating expenses due to several initiatives are significantly concerning.

Shares of this Zacks Rank #3 (Hold) company have gained 22.2% in the past year, underperforming the industry’s rise of 24.3%. Nonetheless, we believe that the company’s strong fundamentals will drive its shares, going forward.

Stocks to Consider

Some better-ranked stocks from the same space are Cboe Global Markets, Inc. (NYSE:CBOE) , MarketAxess Holdings Inc. (NASDAQ:MKTX) and Nasdaq, Inc. (NASDAQ:NDAQ) . All three stocks beat the Zacks Consensus Estimate in the last reported quarter by 9.01%, 1.54% and 1.57%, respectively.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.7% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>



Cboe Global Markets, Inc. (CBOE): Free Stock Analysis Report

Intercontinental Exchange Inc. (ICE): Free Stock Analysis Report

Nasdaq, Inc. (NDAQ): Free Stock Analysis Report

MarketAxess Holdings Inc. (MKTX): Free Stock Analysis Report

Original post
Intercontinental Up On Initiatives & Solid Capital Position
 

Related Articles

Craig Erlam
A Disappointing End To The Week By Craig Erlam - Jul 30, 2021 2

Stock markets have turned negative on the final trading day of the week, with Europe tracking Asia lower and U.S. markets expected to follow. Whether this is the start of a late...

Intercontinental Up On Initiatives & Solid Capital Position

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email