Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, stock exchange operator Nasdaq OMX Group (Nasdaq: NDAQ ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Nasdaq's business and see what CAPS investors are saying about the stock right now.
Nasdaq facts
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Headquarters (founded)
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New York City (1971)
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Market Cap
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$4.0 billion
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Industry
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Specialized finance
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Trailing-12-Month Revenue
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$3.3 billion
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Management
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CEO Robert Greifeld (since 2003)
CFO Adena Friedman (since 2009)
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Return on Equity (average, past 3 years)
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10.8%
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Cash/Debt
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$668.0 million / $2.1 billion
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Competitors
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NYSE Euronext (NYSE: NYX )
CME Group (Nasdaq: CME )
CBOE Holdings (Nasdaq: CBOE )
IntercontinentalExchange (NYSE: ICE )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 688 members who have rated Nasdaq believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars FAOFool and Staka, both of whom are ranked in the top 5% of our community.
Just last month, FAOFool touched on the stock's recent bounce: "It seems the masses are directly equating the strength of the market to the markets. NASDAQ has proven to be an innovative leader and, as a result, will provide solid returns into the future."
Nasdaq's leading position in technology company listings and ever-increasing expansion continue to support its four-star CAPS rating. But while Nasdaq's move into new areas like derivatives and clearing services offer attractive growth opportunities, niche specialists such as CME, CBOE, and InterContinental pose a whole bunch of competitive threats. Add the fact that its fiercest foe NYSE Euronext isn't exactly easing up on its own global consolidation plans, and it's easy to understand some of the risks involved with Nasdaq.
Of course, with as many positives as CAPS All-Star Staka believes Nasdaq has, the stock is certainly worth looking into:
- High insider holdings, no selling
- Agile management
- Chart in a longer term base building process
- Cheap relative to recent past
- They might profit from some regulatory changes which penalize their competitors
What do you think about Nasdaq, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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