Here's Why Nasdaq (NDAQ) is a Strong Growth Stock

Zacks identifies Nasdaq (NDAQ) as a strong growth prospect, assigning it a Growth Style Score of B and a VGM Score of B, despite its Zacks Rank #3 (Hold). The firm forecasts 17.7% year-over-year earnings growth for NDAQ in the current fiscal year, supported by recent analyst upgrades for fiscal 2025 estimates, raising the Zacks Consensus to $3.32 per share and highlighting a +4.4% average earnings surprise. This positive outlook, derived from Zacks' proprietary Style Scores which assess value, growth, and momentum, suggests NDAQ warrants investor consideration, particularly when combined with strong Zacks Ranks for maximized potential.

Analysis

Nasdaq, Inc. (NDAQ) presents a mixed but predominantly positive outlook according to the Zacks rating methodology. While the stock holds a neutral Zacks Rank #3 (Hold), its underlying growth metrics are strong, earning it a 'B' grade for both its Growth Style Score and its composite VGM Score. This is supported by a significant forecast for 17.7% year-over-year earnings growth in the current fiscal year. Forward-looking sentiment from the analyst community is also constructive, evidenced by six upward earnings estimate revisions for fiscal 2025 within the last 60 days. This collective revision has lifted the Zacks Consensus Estimate by $0.05 to $3.32 per share for that period. Furthermore, NDAQ has a demonstrated history of outperformance, posting an average positive earnings surprise of 4.4%. The combination of a robust growth profile and positive earnings revisions suggests that the neutral 'Hold' rating may not fully capture the company's fundamental momentum.

Key Decisions for Investors

• Growth-focused investors should consider NDAQ for their watchlists, given the strong 17.7% forecasted earnings growth and positive analyst estimate revisions for fiscal 2025.
• Despite the strong growth indicators, the current Zacks Rank of #3 (Hold) warrants a cautious approach; an upgrade to a #2 (Buy) or #1 (Strong Buy) would represent a more powerful positive signal according to this methodology.
• Investors should monitor the trend in earnings estimate revisions and the company's ability to continue its track record of positive earnings surprises, as these are the primary drivers underpinning the bullish case.