Is Intercontinental Exchange (ICE) Headed for a Breakout?

Intercontinental Exchange Inc. (ICE) is a vertically integrated operator of financial exchanges and provides ancillary data products. Though the company is probably best known for its ownership of the New York Stock Exchange, ICE operates a large derivatives exchange, too…

Intercontinental Exchange Inc. (ICE) is well-positioned for growth due to the accelerated digitization taking place in the U.S. residential mortgage industry. ICE already has the largest mortgage network in the country, but the integration of Ellie Mae into ICE Mortgage Technology should help boost its mortgage business.

ICE has enough liquidity to handle short-term obligations as it has a current ratio of 1.0. The company is also highly profitable with a net margin of 32.3%. In the latest report quarter, revenues jumped 22.1% year over year leading to a Growth Grade of B in our POWR Ratings system.

The stock appears a little overvalued with a trailing P/E of 24.23. ICE’s stock was showing bullish momentum at the end of last year, but performance has been mixed ever since, as shown in the chart below.

Take a look at the 1-year chart of ICE below with added notations…

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