Core Insights - The financial sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key indicator used to identify oversold conditions, with a value below 30 indicating potential undervaluation [1] Company Summaries - **KKR & Co Inc (NYSE:KKR)**: - Scheduled to release Q3 financial results on Nov. 7, 2025, before market opens - Stock has decreased approximately 8% over the past five days, with a 52-week low of $86.15 - Current RSI value is 27.2, with shares closing at $124.63, down 2.2% [3][8] - **MarketAxess Holdings Inc (NASDAQ:MKTX)**: - Morgan Stanley analyst maintained an Overweight rating but reduced the price target from $274 to $253 - Stock has fallen around 5% in the last five days, with a 52-week low of $168.74 - Current RSI value is 27.2, with shares closing at $169.59, down 0.7% [4][8] - **Apollo Global Management (NYSE:APO)**: - Expected to announce Q3 financial results on Nov. 4, 2025, before market opens - Stock has decreased about 7% over the past five days, with a 52-week low of $102.58 - Current RSI value is 29.9, with shares closing at $127.23, down 2.1% [5][8]

Core Viewpoint - BGC Group is currently viewed as a better value opportunity compared to MarketAxess based on various financial metrics and analyst outlooks [1][7]. Valuation Metrics - BGC Group has a forward P/E ratio of 7.85, significantly lower than MarketAxess's forward P/E of 22.84 [5]. - BGC's PEG ratio stands at 0.37, indicating a more favorable valuation relative to its expected EPS growth, while MarketAxess has a PEG ratio of 3.31 [5]. - The P/B ratio for BGC is 3.97, compared to MarketAxess's P/B of 4.62, suggesting BGC is more attractively valued in terms of market value versus book value [6]. Analyst Outlook - BGC Group holds a Zacks Rank of 2 (Buy), indicating stronger earnings estimate revision activity, while MarketAxess has a Zacks Rank of 3 (Hold) [3]. - The improving analyst outlook for BGC suggests a more favorable investment environment compared to MarketAxess [3][7]. Value Grades - BGC Group has achieved a Value grade of A, while MarketAxess has a Value grade of D, reflecting the differences in their valuation metrics [6].

Core Insights - MarketAxess Holdings Inc. (MKTX) is valued at a market cap of $6.7 billion and operates an electronic trading platform primarily focused on fixed-income securities [1] - The company is classified as a mid-cap stock, emphasizing its size and influence in the capital markets industry, and offers technology-driven trading platforms and comprehensive services [2] Financial Performance - MKTX reported Q2 results with revenue rising 11% year-over-year to a record $219.5 million, slightly above consensus estimates, and adjusted EPS increased 16.3% from the previous year [5] - Despite strong performance, MKTX shares fell 10.1% post-earnings release due to investor caution regarding U.S. trade policy and Federal Reserve interest rate expectations [5] Stock Performance - MKTX shares have declined 39.7% from their 52-week high of $296.68, with a 19.6% drop over the past three months, underperforming the Dow Jones Industrial Average's 7% rise [3] - Over the past 52 weeks, MKTX has fallen 31.4%, significantly lagging behind the Dow's 9.3% increase, and is down 20.8% year-to-date compared to the Dow's 8.4% return [4]

Core Insights - MarketAxess Holdings Inc. (MKTX) has launched Axess IQ Connect, a mobile-friendly solution aimed at private banks and wealth managers, providing real-time access to bond market insights [1][4] Product Features - Axess IQ Connect enhances the Axess IQ platform, allowing financial advisors to access crucial fixed-income data anytime and anywhere, simplifying workflows and providing transparent access to live market insights [2] - The platform includes features like interactive watchlists and optional order management tools, improving efficiency and enabling advisors to react swiftly to market changes [3] Market Impact - The introduction of Axess IQ Connect is a strategic move to strengthen relationships with private banks and wealth managers, transforming the engagement with bond markets through mobility and real-time transparency [4] - If widely adopted, this solution could increase liquidity on the platform and boost recurring revenue streams for MKTX, alongside high trading volumes [5] Financial Performance - In the first half of 2025, MKTX reported a 5% year-over-year growth in revenues and a 13% rise in total credit trading volume [5] - Over the past year, MKTX's shares have declined by 29.6%, contrasting with the industry's growth of 52.1% [6]

Group 1 - The company is responsible for the development of transcript-related projects [1] - The company publishes thousands of quarterly earnings calls per quarter [1] - The company is continuing to grow and expand its coverage [1]

Core Viewpoint - BGC Group is currently viewed as a better value opportunity compared to MarketAxess based on various valuation metrics and earnings outlook [1][7]. Valuation Metrics - BGC has a forward P/E ratio of 8.50, significantly lower than MarketAxess's forward P/E of 24.68 [5]. - The PEG ratio for BGC is 0.40, indicating a more favorable valuation relative to its expected EPS growth, while MarketAxess has a PEG ratio of 3.58 [5]. - BGC's P/B ratio stands at 4.3, compared to MarketAxess's P/B of 4.99, suggesting BGC is relatively undervalued [6]. Earnings Outlook - BGC is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, indicating a positive trend in earnings estimate revisions [3][7].

Group 1 - The company is focusing on changes in the block trading business, particularly in emerging markets (EM) and Eurobonds, which are experiencing different dynamics compared to the U.S. market [1] - There is a significant transformation anticipated in the fixed income market, with only the initial stages currently visible [2] - The CEO emphasizes the revenue challenges faced by the company, indicating ongoing efforts to address these issues [2]

Group 1 - The company is focusing on changes in the block trading business, particularly in emerging markets (EM) and Eurobonds, which are experiencing success due to different trader attitudes compared to the U.S. market [1] - There is a significant transformation anticipated in the fixed income market, with the company only seeing the initial stages of this change [2] - The CEO highlighted the revenue challenges faced by the company, indicating ongoing efforts to address these issues [2]

MarketAxess FY Conference Summary Company Overview - **Company**: MarketAxess (NasdaqGS: MKTX) - **Event**: Barclays' 23rd Global Financial Services Conference - **Date**: September 09, 2025 Key Points Industry and Market Dynamics - **Block Trading Business**: MarketAxess is focusing on enhancing its block trading capabilities, particularly in emerging markets (EM) and euro bonds, which are experiencing different trader attitudes compared to the U.S. market [3][4] - **Revenue Challenges**: The company faces challenges in its U.S. credit business, with flat revenue attributed to macroeconomic conditions, slow adoption of new trading protocols, leakage of small ticket trades into portfolio trading, and reduced activity in longer-term bonds [5][6][7] - **Growth in Non-U.S. Credit**: Non-U.S. credit revenue is growing at a rate of 13%, driven primarily by emerging markets and euro bonds, indicating a significant opportunity for electronic trading in these regions [4][9] Trading Protocols and Innovations - **Portfolio Trading**: MarketAxess is actively working to increase its market share in portfolio trading, which has seen a growth in block trading by 38% year-to-date. The company is investing in automation and targeted RFQ (Request for Quote) solutions to enhance trading efficiency [11][15][19] - **Automation Adoption**: The adoption of automation in trading is increasing, with one client reporting that automation now accounts for 35% of their volume on MarketAxess, indicating a shift towards larger block trades [12][14] - **Dealer Selection Tool**: A proprietary dealer selection tool has been developed to assist clients in choosing the right dealers for their trades, particularly in the EM market, where dealer diversity poses challenges [18][19] Macro Factors and Market Outlook - **Market Volatility**: The current macro environment is characterized by low volatility and tight spreads, which are impacting trading volumes. However, there is optimism for increased activity with potential rate cuts from the Federal Reserve [27][29][32] - **Future Opportunities**: The company sees significant opportunities in the U.S. investment-grade market, where 46% of TRACE trades are of larger sizes that are still primarily executed via traditional methods. MarketAxess aims to capture this segment through enhanced electronic trading solutions [10][20] Strategic Initiatives - **Midex Solution**: The upcoming launch of the Midex solution for dealer-to-dealer trading is expected to enhance MarketAxess's competitive position in this segment, which has been underserved [40][45] - **Partnership with ICE**: The integration with ICE is ongoing, with a focus on enhancing liquidity in the municipal and corporate bond markets [53] - **M&A Strategy**: MarketAxess is prioritizing organic growth over acquisitions, focusing on delivering new technology and solutions to meet market demands [55][56] Financial Performance and Shareholder Returns - **Share Repurchase Program**: The company has been active in share repurchases, reflecting its strong cash generation capabilities and commitment to returning value to shareholders [57] Additional Insights - **Algorithmic Trading**: There is a growing trend in algorithmic trading among buy-side clients, which is expected to improve market liquidity and turnover [47][49] - **Private Credit Market**: MarketAxess is exploring opportunities in the private credit market, anticipating a convergence of public and private credit trading on its platform [54] This summary encapsulates the key insights and strategic directions discussed during the MarketAxess FY Conference, highlighting the company's focus on innovation, market opportunities, and financial performance.

Core Insights - Triba Research aims to identify high-quality businesses capable of delivering sustainable, double-digit returns over the long term [1] - The investment strategy emphasizes companies with strong competitive advantages, operating in growing markets, maintaining low debt levels, and led by skilled management teams [1] - The focus remains on long-term value creation while staying informed about the latest developments in the market [1]