Wells Fargo’s Best Growth Stocks: 28 Stocks With The Highest Consensus EPS Growth Estimates

26. Intercontinental Exchange, Inc. (NYSE:ICE)

Consensus Long-Term EPS Growth Estimate: 10%

Number of Hedge Fund Holders: 70

Intercontinental Exchange, Inc. (NYSE:ICE) is a financial technology company that operates the world’s most valuable stock exchange, the New York Stock Exchange (NYSE). This simple fact means that the firm has a wide competitive moat that is unlikely to be challenged unless significant disruption upends the financial industry. Companies worldwide froth at the opportunity to list on the NYSE due to the billions in dollars of capital available from US investors. Yet, its place in the finance industry also means that Intercontinental Exchange, Inc. (NYSE:ICE)  is also dependent on the health of capital markets. Higher trading activity and easily accessible capital mean that the firm generates revenue via listings and other activities. Additionally, Intercontinental Exchange, Inc. (NYSE:ICE) is particularly sensitive to exchange volumes since 62% of its revenue comes through the exchange business, and it has continued to rely on exchanges despite a $6 billion decision to buy a data analytics company. However, the firm benefits from running a myriad of non-stock exchanges such as those for bonds some of which typically fare well during economic turbulence.

Aristotle Atlantic Partners mentioned Intercontinental Exchange, Inc. (NYSE:ICE) in its Q3 2024 investor letter. Here is what the fund said:

“Intercontinental Exchange, Inc. (NYSE:ICE) contributed to portfolio performance in the third quarter, driven by continued strength in the company’s Exchanges segment and expectations that the Mortgage Technology segment’s revenues have troughed ahead of an eventual recovery in U.S. housing market activity. Exchanges’ revenues continue to be driven by growth in energy and interest rate futures trading volumes, with energy trading activity expected to remain elevated, primarily bolstered by increasing data center-driven electricity demand.”