Stockchase Opinions

Stockchase Insights Tradeweb Markets TW-Q BUY Dec 06, 2024

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We think TW looks like a strong investment. The stock is up 50% year-to-date and has seen trading volumes steadily rise this year. Fundamentals are very attractive where it is a high margin business that has demonstrated top line growth of nearly 30% over the last-twelve-months. It generates high cash flows and has a strong balance sheet with $1.1B in net cash. The company has previously been acquisitive, and with all the cash they have, this could be a future catalyst. Granted it is expensive at 42x forward earnings but we think it is a strong name backed by fundamentals with potential to do well in the long-term. 
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They've made bond trading digital. He liked this from day one. TW went into overdrive when Covid closed the trading floor. He bought this in the mid-30s and it's now at $81. TW keeps reporting record monthly trading volumes.