Thanks to Trump, This Financial Behemoth Is My Stock Pick for 2025
The company has a dominant position in markets and will benefit from less regulation, with $300 right around the corner.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
There was a certain aura at the New York Stock Exchange (NYSE) recently. Perhaps it was the build up for the end-of-year party, which has always been a gala affair. Or maybe it was President-Elect Trump ringing the opening bell on December 12, a day in which he was also named Time Magazine's "Man of the Year."
Trump received a standing ovation and interest in his appearance had never been more appreciated by the traders and specialists on the floor. Perhaps they see some light at the end of the tunnel, making their lives easier and less taxing.
With many of the challenges behest upon the NYSE and other exchanges with regulations galore, a new, more business-friendly economy could be in line if Trump gets his way, which may very well be the case. The NYSE is where companies come to market (same as the Nasdaq), but the truth is that regulations and costs have made it difficult for businesses to go public, or do an initial public offering (IPO). All that may change in 2025 and beyond. The beneficiary? The Intercontinental Exchange ICE stands to be a big winner.
The company, of course, owns the NYSE and other important properties like Black Knight, Winnipeg Commodity Exchange, the NY Board of Trade, Interactive Data, Super Derivatives, EuroClear and EllieMae. The company has an enviable portfolio of brands that has made them a leader in trading, equities, commodities and futures around the globe. This behemoth is a trailblazer of innovation and technology that continues to find new ways for traders to make money in the 21st century. The stock is trading near all-time highs and is ready to make a valiant run in the years ahead.
From a fundamental view, the company has grown earning single digits for the past three years but estimates a turn back to double-digit growth in 2025. The stock is moderately expensive by valuation measures, selling at 27-times earnings with a growth rate of 9%. That is a pretty expensive multiple but one many analysts say is deserved due to the dominant market share.
The technical factors for ICE are fairly strong. We fan out to a weekly chart as we estimate a long term thesis on this stock. With a series of higher highs and higher lows, ICE is in a strong uptrend. Recent price action has it at the all-time highs first tagged in early 2022. Money flow is robust on the daily chart (not shown) and the MACD remains bullish (on the daily chart) and has been since mid 2024.
Look for some good things from the ICE in 2025, perhaps a move to $300 is just around the corner.
At the time of publication, Lang had no positions in any securities mentioned.
