Nasdaq, Inc. (NDAQ) Soars 1.11% in Three Days on Strong Earnings

Nasdaq, Inc. (NDAQ) rose 0.07% today, marking its third consecutive day of gains, with a total increase of 1.11% over the past three days. The share price reached its highest level since March 2025, despite an intraday decline.

The strategy of buying NASDAQ shares after they reached a recent high and holding for 1 week resulted in moderate performance over the past 5 years. The annualized return was 16.25%, which is slightly above the market average. However, this was underperforming compared to some other strategies, such as buying Spotify Technology or Goldman Sachs Group, which showed higher returns. The 1-week holding period also underperformed the performance of holding Option Care Health or GFL Environmental for the same period, which had higher average annual returns. Overall, while the strategy showed a decent return, there are other options that might have provided better results with similar holding periods.

One of the key factors driving the recent rise in Nasdaq, Inc.'s stock price is its strong financial performance. A month ago, the company reported robust free cash flow and announced a 13% increase in its dividend. This positive financial news has bolstered investor confidence, contributing to the upward trend in NDAQ's stock price.

In terms of valuation, Nasdaq, Inc. is considered slightly overvalued based on current dividend yield and price/earnings (P/E) ratio analysis. However, there is still potential for growth. The dividend yield-based price target suggests a valuation of $81.20, while the P/E-based price target ranges between $113.65 and $117.49, indicating that the stock may have further upside potential.

Investors are also exploring strategic approaches to capitalize on NDAQ's potential. One suggested strategy involves shorting out-of-the-money put options, which allows investors to earn income while setting a lower buy-in target. This approach reflects the belief that NDAQ stock still presents a buying opportunity despite its current valuation.