Nomura Holdings (NMR) Q2 Results Top Estimates on Equity Trading Boom

Nomura Holdings, Inc. (NYSE:NMR) is one of the best low-priced stocks to buy right now. On July 29, the company delivered solid first-quarter results that affirmed underlying growth. Net income in the quarter was up 52% year over year to ¥104.6 billion or $706 million. It marked the sixth straight quarter of growth that exceeded the ¥76.4 billion average of three analyst estimates.

Nomura Holdings (NMR) Q2 Results Top Estimates on Equity Trading Boom

The significant earnings growth comes from the Japanese firm capitalizing on the equity trading boom. Revenue from stock trading was up 20% year over year, marking the ninth consecutive quarter of growth. Revenue from investment banking increased 2%, led by fees from bond underwriting.

Nevertheless, fees on mergers and acquisitions dropped even as Nomura took the top spot among financial advisers. Likewise, the company incurred a loss in its European operations due to a higher-than-expected effective tax rate of 33%. On the other hand, the wealth management division reported a quarterly profit increase of ¥2.8 billion, attributed to an increase in trading in bonds and equities.

Nomura Holdings, Inc. (NYSE:NMR) is a global financial services group that offers a wide range of services through its four business divisions: Wealth Management, Investment Management, Wholesale (comprising Global Markets and Investment Banking), and Banking. It provides services to individuals, institutions, corporations, and governments.

While we acknowledge the potential of NMR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NMR and that has 100x upside potential, check out our report about this cheapest AI stock.

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