8 Green Days In A Row: Tradeweb Markets Stock Is Up 11%
Shares of Tradeweb Markets (TW) have closed higher in each of the last 8 sessions, a cumulative gain of 11.4%. That added about $2.7 billion to the company’s market value, which now stands at about $26.0 billion. The stock closed at $122.57 on Friday, October 23, 2.9% below its 52-week high of $126.23 and 34.1% above its low of $91.38.
TW Versus The S&P 500
Returns for TW and the S&P 500 over the streak and the periods around it, all ending Friday, October 23 and including dividends:
| Return Period | TW | S&P 500 |
|---|---|---|
| 1 Day | 0.6% | -0.5% |
| 8 Days (Current Streak) | 11.4% | -2.3% |
| 1 Month (21 Trading Days) | 21.2% | -1.0% |
| 3 Months (63 Trading Days) | 20.3% | 3.1% |
| Year To Date | 14.4% | 12.4% |
| 1 Year (252 Trading Days) | 11.7% | 15.1% |
How The Streak Compares With The Market
The market explains little of this: the S&P 500 lost 2.3% over the same 8 sessions, including dividends, against Tradeweb Markets’ +11.4%. Over the past three months the stock is up 20.3%, a window that includes the streak; over the other 55 sessions of that window it was up 7.9%.
What The Numbers Say About The Rally
On the fundamentals, revenue grew 14.0% over the last twelve months, against a median of 10.2% for S&P 500 Financials stocks; its operating margin is 44.1%, versus a median of 26.8%; and the stock trades at 29.0 times trailing earnings against a median of 13.8. The numbers make the run harder to justify: a multiple well above the median. At this price, the stock is asking a lot of the business.
A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.
One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.