What Makes MarketAxess (MKTX) a New Buy Stock

Core Viewpoint - MarketAxess (MKTX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. MarketAxess Earnings Outlook - MarketAxess is projected to earn $7.33 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 7% [8]. - Over the past three months, the Zacks Consensus Estimate for MarketAxess has risen by 4%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of MarketAxess to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].