Nasdaq: FinTech Strength, Rising Profits, But Flat Stock Warrants An Upgrade

Nasdaq is upgraded to buy, as valuation has become attractive despite technical weakness and underperformance versus the S&P 500. NDAQ delivered double-digit revenue growth, robust operating margins, and strong free cash flow, with all divisions contributing to performance. Earnings outlook is solid, with FY 2026 EPS potentially reaching $4 and recent sellside upgrades outpacing downgrades. Key risks include rising competition, capital markets slowdown, and technical resistance, but fundamentals justify a constructive stance. A slew of major 2026 IPOs and heavy, speculative trading action hasn’t helped shares of Nasdaq ( NDAQ ). The financial exchange company’s stock lags the S&P 500 by about 20 percentage points on the