Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, stock exchange operator NYSE Euronext (NYSE: NYX ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at NYSE Euronext's business and see what CAPS investors are saying about the stock right now.
NYSE Euronext facts
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Headquarters
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New York City
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Market Cap
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$6.68 billion
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Industry
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Specialized finance
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Trailing-12-Month Revenue
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$4.46 billion
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Management
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CEO Duncan Niederauer (since 2007)
CFO Michael Geltzeiler (since 2008)
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Return on Capital (Average, Past 3 Years)
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6%
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Compound Annual Revenue Growth (Over Past 3 Years)
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44.2%
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Cash / Debt
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$497 million / $2.9 billion
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Dividend Yield
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4.7%
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Competitors
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Nasdaq OMX Group (Nasdaq: NDAQ )
CME Group (Nasdaq: CME )
IntercontinentalExchange (NYSE: ICE )
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CAPS Members Bullish on NYX Also Bullish on
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Goldman Sachs (NYSE: GS )
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CAPS Members Bearish on NYX Also Bearish on
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Citigroup (NYSE: C )
Ford Motor (NYSE: F )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 601 All-Star members who have rated NYSE Euronext believe the stock will outperform the S&P 500 going forward. These bulls include Jackcodak and Motley Fool co-founder David Gardner (TMFBreakerDave), both of whom are ranked in the top 10% of our community.
Less than two months ago, Jackcodak tapped the stock as a smart way to get into the market:
Sure, [NYSE Euronext] has had difficulties living up to its cost savings promises in the past. However, what we find is a company that is integrating its Euronext and Futures trading vehicles quite well. … In the long run, [NYSE Euronext] will grow nicely along with the broader market.
In a pitch from last month, David expands on NYSE Euronext as a powerful play on a leveling playing field:
With the NYSE losing market share in its own securities, so-called flash trading and other shadow exchanges are the ones eating it up. But as unregulated entities, they are getting a nearly free ride, while [NYSE Euronext] bears all the regulation cost. I see this situation inevitably equalizing, where either [NYSE Euronext] gets looser regulation (yeah, right), or more likely, all other players are forced to become transparent. The NYSE will then compete more successfully.
This company isn't counted on for much these days (witness the 5% yield), but with a powerful brand, good leadership, and an ability to continue to consolidate world markets through buyouts, I think the [NYSE Euronext] beats the market from here.
What do you think about NYSE Euronext, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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