The Tradeweb Markets (NASDAQ:TW) Share Price Is Up 43% And Shareholders Are Holding On

By
Simply Wall St
Published
July 01, 2021
NasdaqGS:TW
Source: Shutterstock

One way to deal with stock volatility is to ensure you have a properly diverse portfolio. Of course, in an ideal world, all your stocks would beat the market. One such company is Tradeweb Markets Inc. (NASDAQ:TW), which saw its share price increase 43% in the last year, slightly above the market return of around 42% (not including dividends). Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

See our latest analysis for Tradeweb Markets

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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 22%. The share price gain of 43% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago. The fairly generous P/E ratio of 83.84 also points to this optimism.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

earnings-per-share-growth
NasdaqGS:TW Earnings Per Share Growth July 1st 2021

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

In the last year the market returned about 44%, and Tradeweb Markets generated a TSR of 43% for its shareholders. A substantial portion of that gain has come in the last three months, with the stock up 11% in that time. This suggests the share price maintains some momentum, and investors are taking a more positive view of the stock. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Tradeweb Markets you should know about.

Of course Tradeweb Markets may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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