Nasdaq Today – Tradeweb Markets (NASDAQ:TW) Shareholders Booked A 47% Gain In The Last Year
One way to deal with stock volatility is to ensure you have a properly diverse portfolio. But if you’re going to beat the market overall, you need to have individual stocks that outperform. Tradeweb Markets Inc. (NASDAQ:TW) has done well over the last year, with the stock price up 47% beating the market return of 42% (not including dividends). Tradeweb Markets hasn’t been listed for long, so it’s still not clear if it is a long term winner.
Check out our latest analysis for Tradeweb Markets
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During the last year Tradeweb Markets grew its earnings per share (EPS) by 63%. This EPS growth is significantly higher than the 47% increase in the share price. Therefore, it seems the market isn’t as excited about Tradeweb Markets as it was before. This could be an opportunity. Having said that, the market is still optimistic, given the P/E ratio of 79.94.
The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Tradeweb Markets has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Tradeweb Markets will grow revenue in the future.
A Different Perspective
Tradeweb Markets shareholders have gained 47% over twelve months (even including dividends), which isn’t far from the market return of 45%. And the stock has been on a nice little run lately, with the price climbing 23% higher in 90 days. It could be that word is spreading about its positive business attributes. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we’ve spotted 1 warning sign for Tradeweb Markets you should know about.
But note: Tradeweb Markets may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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