Strength Seen in Tradeweb (TW): Can Its 8.2% Jump Turn into More Strength?

Tradeweb Markets (TW) shares ended the last trading session 8.2% higher at $99.66. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 8.1% loss over the past four weeks.

Shares of Tradeweb rallied yesterday after Goldman Sachs upgraded the stock to Buy from Neutral and raised its price target to $146 from $128. The upgrade was primarily driven by expectations of strong long-term earnings momentum, supported by the continued adoption of electronic trading, broader asset-class coverage and sustained operating leverage. The bullish analyst stance boosted investor confidence in Tradeweb’s growth prospects, triggering a solid rally in the stock.

This electronic marketplaces operator is expected to post quarterly earnings of $0.97 per share in its upcoming report, which represents a year-over-year change of +11.5%. Revenues are expected to be $568.65 million, up 10.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Tradeweb, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TW going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Tradeweb is a member of the Zacks Financial - Investment Bank industry. One other stock in the same industry, Moelis (MC), finished the last trading session 4% higher at $65.42. MC has returned -9.1% over the past month.

Moelis' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.64. Compared to the company's year-ago EPS, this represents a change of +20.8%. Moelis currently boasts a Zacks Rank of #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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