Intercontinental Exchange Inc (NYSE:ICE) — This large-cap growth stock represents equity in a fully electronic marketplace that offers exchange-based and OTC trading of many energy and soft commodity products. It expanded its global operations with the acquisition of Interactive Data Corp in December 2015. This gave ICE a stronger position in derivatives trading products in Europe.
Standard & Poor’s forecasts that President Donald Trump administration’s regulatory and business procedures and policies will be positive for this exchange. Higher commodities trading volumes, rising interest rates, and expansion of non-trading activities should add to top and bottom lines.
They kept their 12-month price target at $68 on a forward price-to-earnings ratio of 22.1X their 2017 earnings estimates. Their earnings per share for 2017 is $3.07 and 2018 is at $3.40. Last August, ICE stock started a $1 billion share buyback plan that started in November. As of February they had executed 20% of that plan.
I anticipate that consensus earnings and revenue forecasts will expand as the quarterly profits accrue and ICE progresses with their stock-purchase plan.
ICE stock is trading in a broad bull channel that began with a long-term buy signal, a Golden Cross, in May 2016. Since then the channel has advanced at about 30 degrees with almost every top resulting in a pullback to the channel’s support line. On March 17 ICD flashed its latest reversal and the stock fell from $62 to its 50-day moving average at about $59.
Therefore try to buy ICE under $60 with a trading target of $68 for a proposed trade of over 11%. Long-term investors may buy this five-star S&P “strong buy” at the current price as an investment in the growing Financial Exchanges and data markets.
Tell us what you think about this article! Drop us an email at editor@investorplace.com, chat with us on Twitter at @InvestorPlace or comment on the post on Facebook. Read more about our comments policy here.
