Why BGC Group, Inc. (BGC) Soared on Tuesday

We recently compiled a list of the 10 Stocks Firm Up Amid Cautious Trading. In this article, we are going to take a look at where BGC Group, Inc. (NASDAQ:BGC) stands against the other stocks.

Wall Street extended its lackluster performance on Tuesday, with two major indices finishing with only slight changes amid a series of key factors keeping investor sentiment neutral.

Only the Dow Jones finished in the green territory, posting a 0.37 percent gain. In contrast, the S&P decreased by 0.47 percent while the tech-heavy Nasdaq fell by 1.37 percent.

During the last trading session, ten companies defied a generally cautious market, albeit posting only modest gains. In this article, we have detailed the reasons behind their stronger performance.

To come up with Tuesday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A portrait of a successful businessman looking up with confidence and optimism, surrounded by financial reports.

BGC Group, Inc. (NASDAQ:BGC)

BGC Group, Inc. (NASDAQ:BGC) rallied by 6.74 percent on Tuesday to close at $9.5 per share as investor sentiment was buoyed by Bank of America’s upgraded rating for the company.

On the same day, Bank of America gave BGC Group, Inc. (NASDAQ:BGC) a “buy” rating and a price target of $16, which represented a 68-percent premium from its last closing price.

According to analyst Eli Abboud, BGC Group, Inc. (NASDAQ:BGC) is the most overlooked Trump trade in diversified financials, adding that the company’s trading offerings, such as the new FMX Futures Exchange, stand to benefit from the Trump administration’s preference for deregulation.

“Despite BGC trading down post-election, we think an eased regulatory backdrop significantly accelerates FMX Futures’ ramp while the new administration’s agenda (bank deregulation, deficit spending, foreign policy) benefits trading volumes,” he said.

Overall BGC ranks 2nd on our list of Tuesday’s top gainers. While we acknowledge the potential of BGC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BGC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.