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Nasdaq (NDAQ) Organizes Business Operation in Three Units

As part of a strategic move to ramp up growth, Nasdaq, Inc. NDAQ will arrange its business units into three divisions — Market Platforms, Capital Access Platforms, and Anti-Financial Crime. This move is intended to better align customers’ requirements in the evolving global financial system.

Market Platforms will include Nasdaq’s North American and European Market Services, Market Infrastructure Technology as well as two new growth pillars, Digital Assets and Carbon Markets. Capital Access Platforms will combine Nasdaq’s Corporate Platforms and Investment Intelligence businesses. Anti-Financial Crime will include Verafin and Nasdaq’s world-leading market and trade surveillance products.  At present, Nasdaq manages, operates and provides products and services in four business segments: Market Services, Corporate Services, Information Services and Market Technology. This new structure will be effective from the fourth quarter of 2022.

Nasdaq noted that the anti-fin crime space has a total addressable market of $12.5 billion and is expected to witness a CAGR of 17% through 2024. The Verafin buyout in February 2021 consolidated Nasdaq's established reg tech leadership to create a global SaaS leader. Nasdaq aims 40-50% Saas revenues as a percentage of total revenues by 2025.

Nasdaq stays focused on generating more revenues from high-growth Market Technology and Investment Intelligence segments and thus diverting R&D spending toward higher-growth products.

Given the vast opportunities in the cryptocurrency markets, Nasdaq has been accelerating its technology expansion. Technology expansion with SMARTS surveillance in non-financial markets is in tandem with this Zacks Rank #3 (Hold) company’s growth strategy.

Year to date, the stock has lost 16.7% compared with the industry’s decrease of 35.9%. Acceleration of organic growth, ramping up the on-trading revenue base, strategic buyouts to capitalize on growing market opportunities and effective capital deployment should help shares bounce back.

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Stocks to Consider

Some better-ranked stocks from the finance sector are Arch Capital Group Ltd. ACGL, American Financial Group, Inc. AFG and ProAssurance Corporation PRA, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Arch Capital surpassed earnings estimates in three of the last four quarters and missed in one, the average being 33.64%. In the past year, the insurer has rallied 16.4%.

The Zacks Consensus Estimate for Arch Capital’s 2022 and 2023 earnings has moved 9.2% and 7.2% north, respectively, in the past 60 days.

American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 37.09%. In the past year, American Financial has lost 1.9%.

The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 4% and 4.3% north, respectively, in the past 60 days.

The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average being 150.9%. In the past year, the insurer has lost 19.2%.

The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 25.9% and 13.9% north, respectively, in the past 60 days.

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