MarketAxess has gotten torched over the last six months - since January 2026, its stock price has dropped 34.3% to $115.60 per share. This may have investors wondering how to approach the situation.
Is there a buying opportunity in MarketAxess, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free.
Why Is MarketAxess Not Exciting?
Even with the cheaper entry price, we’re swiping left on MarketAxess for now. Here are two reasons you should be careful with MKTX, plus one stock we’d rather own.
1. Long-Term Revenue Growth Disappoints
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
Over the last five years, MarketAxess grew its revenue at a sluggish 4% compounded annual growth rate. This was below our standard for the financials sector.
2. EPS Growth Has Stalled
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
MarketAxess’s flat EPS over the last five years was below its 4% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.
Final Judgment
MarketAxess isn’t a terrible business, but it isn’t one of our picks. Following the recent decline, the stock trades at 14.5× forward P/E (or $115.60 per share). Beauty is in the eye of the beholder, but we don’t really see a big opportunity at the moment. We’re pretty confident there are superior stocks to buy right now. We’d suggest looking at one of our top digital advertising picks.
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