MKTX - Bullish Weekly L2 Exhaustion SignalNASDAQ:MKTX has triggered a bullish weekly level 2 exhaustion signal. The backtest has a 100% win rate over 5 data points, with an avg move of +9.5% by the 6th candle following the signal.
MKTX trade ideas
11/5/24 - $mktx - Hard to justify valuation near $30011/5/24 :: VROCKSTAR :: NASDAQ:MKTX
Hard to justify valuation near $300
- a few ways to think about this
- first, seems like they've got a nice niche that could be M&A addressable to larger institutions
- second, quite correlated to rates, as you can see from this basic 10Y overlay. the disconnect for me in the last 2 yr seems pretty glaring
- so you look at EPS... growing low DD, but PE is high 20s? mm that's pretty expensive.
- how about we go out 2 years where book value is ~$50/shr a nice round # and we say (ROE - g)/(Ke - g) = (25 - 5)/(10 - 5) = 4x multiplier. I'm being generous here on probably ROE (now closer to low 20s) but perhaps "g" remains HSD and Ke is lower. ANYWAY, this puts me at $50 * 4 = $200. again, a touch lower.
- listen, this is just something that doesn't get me excited. it's a large biz, correlated to rates, valuation isn't "obvious". I'd probably be a buyer in the high $100s, call it $175-180. but otherwise i'm happy to have just taken a look and moved on.
V
MarketAxess - The New GoogleThis is an impeccable company.
Flawless financials. High profit margins. High return on equity. Steady growth. Low debt. Lots of data to back it up.
Exceptional company.
And its price ratios have not been at these levels since 2015. In other words its valuation has not been so low for years.
The opportunity is still on.
Have A Great Day.
MKTX: MarketAxess - Finding Cycle Troughs in a Rising MarketI recently added new position MKTX to the portfolio.
MarketAxess operates the leading platform for the electronic trading of corporate bonds.Recently, we found for an active high-yield bond fund, and on the manager call they mentioned they exclusively use MarketAxess for their trading activity. The company is poised to capture broad-based capital market growth as they've recently expanded their business into different segments of the fixed income market. I've been following MKTX for a long time, and think the setup looks attractive.
Morningstar gives it a Wide economic moat, a Stable moat trend, Exemplary capital allocation, and a four star valuation. A fair value of $350 means MKTX is trading at a 27% discount.
Technically, the "h" pattern is a durable double bottom setup.
MKTX - The OpportunityWhat a magnificent company.
Total debt sits at around 80mil$ with net income of 250mil$ at a profit margin of 35% in 2022. Before 2019, their debt was 0$. This leaves them with highest debt to equity of 0.13 in 2019.
Profit margins range from 34% to 44% several years back. This metric is great in itself but adding consistent, rising revenue makes it stellar.
The company always has cash on hand. Free cash flow closely matches net earnings, consistently, year over year. In 2022 it was 290mil$, of which their total debt represented only 28%. Exceptional.
Now, great financial health, impressive earning power, rising revenue, equity and sales lead us to the opening line of this text. But let's look further.
At the current price of 250$ per share, using the earnings based valuation, a conservative estimate would indicate that the company is trading somewhere around 80% of its intrinsic value.
Acquiring 1$ of this kind of company at 80¢ is worth consideration, at least.
Have A Great Day.
MKTX Bullish ScenarioNASDAQ:MKTX Signal
Entry - $280
Target 1 - $368
Target 2 - $422
Invalidation - $254
Risk to reward ratio - 5.2
Technical confirmations
We think that price just finished impulsive part of Elliot Wave analysis and now should make a correction upwards.
There is huge increase in volume at the bottom now.
The main target is set to 0.5 Fib zone and also there we can spot a liquidity zone so it makes sense for the price to climb to $422.
Fundamental confirmations
Why should price reach Target level?
P/E ratio 42% shows that investors forecast big growth for this company.
Debt to equity ratio: <1 (Stable company).
CNN price targets: min $300, medium $370 high $460.
Zacks verdict A on companies growth ratio.
NASDAQ:MKTX ROE and ROA ratios are above industry average.
Q1 results came positive and shows growth.
MKTX LONG SET UPMarket is finishing1-5 Elliot Wave Theory we are expecting last wave to end on a ~243 Demand zone, because it is 61.8% fib retracement zone. our invalidation is just below demand zone and our target is liquidity zone market created while moving down.
Target: 424
Entry: 243
Invalidation: 218.81
Breaking of a 10 Year TrendMKTX broke its massive bull run trendline that started since 2009. A huge head and shoulders formation in the weekly chart (May 2020 - Sep 2021) was broken in September, signaling a reversal and weakness in the stock. MKTX now has a pullback to the neckline at $410, offering another opportunity to short with an attractive risk/reward.
Stop loss at neckline @ $430
Target @ ~$300
$MKTX with a bullish outlook following its earnings #BeststocksThe PEAD projected a bullish outlook for $MKTX after a negative over reaction following its earnings release placing the stock in drift C
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$MKTX #MKTX took my #1 $516.xx Not really sure where will it go...
Wish me luck!
#1 Do I like the product? Seriously (I do not know the product without further research.)
#2 Do I like the man behind the wheel? Look answer #1
#3 Do I like the company? It doesn't matter.
#4 Do I like the profit? Yes!!!
MKTX, price moved above its 50-day Moving Average on Oct 05, 20This price move could indicate a change in the trend, and may be a buy signal for investors. Tickeron A.I.dvisor found 38 similar cases, and 32 were successful. Based on this data, the odds of success are 84%. Current price $496.17 crossed the resistance line at $497.15 and is trading between $497.15 resistance and $483.18 support lines. Throughout the month of 09/02/20 - 10/05/20, the price experienced a +0.65% Uptrend. During the week of 09/28/20 - 10/05/20, the stock enjoyed a +4% Uptrend growth.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 24, 2020. You may want to consider a long position or call options on MKTX as a result. Tickeron A.I. detected that in 49 of 66 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 74%.
The Moving Average Convergence Divergence (MACD) for MKTX just turned positive on September 24, 2020. Looking at past instances where MKTX's MACD turned positive, the stock continued to rise, Tickeron A.I. shosw that in 37 of 47 cases over the following month. The odds of a continued upward trend are 79%.
Following a +4.37% 3-day Advance, the price is estimated to grow further. Considering data from situations where MKTX advanced for three days, Tickeron A.I. shosw that in 258 of 352 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
