A 9-Day Winning Streak Has Tradeweb Markets Stock Up 12%
Tradeweb Markets (TW) stock has risen for 9 consecutive trading days, gaining 12.2% over that stretch. That added about $2.9 billion to the company’s market value, which now stands at about $26.2 billion. The stock closed at $123.45 on Monday, October 26, 2.2% below its 52-week high of $126.23 and 35.1% 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 Monday, October 26 and including dividends:
| Return Period | TW | S&P 500 |
|---|---|---|
| 1 Day | 0.7% | 0.7% |
| 9 Days (Current Streak) | 12.2% | -1.6% |
| 1 Month (21 Trading Days) | 22.0% | -0.8% |
| 3 Months (63 Trading Days) | 18.5% | 3.6% |
| Year To Date | 15.2% | 13.2% |
| 1 Year (252 Trading Days) | 12.0% | 15.3% |
A Stock-Specific Run, Or A Market Move?
The market explains little of this: the S&P 500 lost 1.6% over the same 9 sessions, including dividends, against Tradeweb Markets’ +12.2%. Over the past three months the stock is up 18.5%, a window that includes the streak; over the other 54 sessions of that window it was up 5.6%.
Do The Fundamentals Support The Run?
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 29.2 times trailing earnings against a median of 13.9. 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.
If you are looking for strength with more behind it than a hot tape, our Guidance Momentum screen surfaces the names where management raised its own outlook.
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.