Is CME Stock a Good Investment?

CME Investment Advice

CME

To provide specific investment advice or recommendations on CME Group stock, we recommend investors consider the following general factors when evaluating CME Group. This will help you to make an informed decision on whether to include CME in one of your diversified portfolios:

Examine CME's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research CME's leadership team and their track record. Good management can help CME navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Financial Exchanges & Data space and any emerging trends that could impact CME's business and its evolving consumer preferences.
Compare CME's performance and market position to its competitors. Analyze how CME is positioned in terms of product offerings, innovation, and market share.
Check if CME pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about CME's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in CME Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if CME Group is a good investment.

Sell

Buy

Hold

Macroaxis provides advice on CME Group to complement and cross-verify current analyst consensus on CME Group. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure CME is not overpriced, please confirm all CME Group fundamentals, including its price to book, cash and equivalents, and the relationship between the shares owned by institutions and gross profit . Given that CME Group has a price to earning of 32.83 X, we suggest you to validate CME Group market performance and probability of bankruptcy to ensure the company can sustain itself in the future given your prevailing risk tolerance and investing horizon.

Market Performance	Good	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Very Low	Details
Economic Sensitivity	Moves indifferently to market moves	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine CME Stock

Researching CME's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 89.0% of the company shares are held by institutions such as insurance companies. The book value of CME was currently reported as 78.47. The company recorded earning per share (EPS) of 9.51. CME Group last dividend was issued on the 9th of December 2024. The entity had 5:1 split on the 23rd of July 2012.

To determine if CME is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding CME's research are outlined below:

	CME Group has a strong financial position based on the latest SEC filings
	Over 89.0% of the company shares are held by institutions such as insurance companies
	Latest headline from nypost.com: Dow leaps over 400 points to record close as investors welcome signs of robust economy

CME Quarterly Accounts Payable

129.9 Million

CME uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in CME Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to CME's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	14th of February 2024 Upcoming Quarterly Report	View
	24th of April 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	14th of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact CME's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises CME's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2003-07-22	2003-06-30	0.19	0.21	0.02	10
2003-04-22	2003-03-31	0.13	0.15	0.02	15
2004-04-27	2004-03-31	0.24	0.27	0.03	12

Know CME's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as CME is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading CME Group backward and forwards among themselves. CME's institutional investor refers to the entity that pools money to purchase CME's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Fidelity International Ltd	2024-06-30	3.9 M
Northern Trust Corp	2024-09-30	3.5 M
Vontobel Holding Ltd.	2024-06-30	3.5 M
Fiera Capital Corporation	2024-06-30	3.3 M
Guardcap Asset Management Limited	2024-09-30	3.3 M
Royal Bank Of Canada	2024-06-30	3.2 M
Mitsubishi Ufj Asset Management Co.,ltd	2024-09-30	3 M
Raymond James & Associates	2024-09-30	2.9 M
Legal & General Group Plc	2024-06-30	2.8 M
Vanguard Group Inc	2024-09-30	33.9 M
Blackrock Inc	2024-06-30	25.7 M

Note, although CME's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

CME's market capitalization trends

The company currently falls under 'Large-Cap' category with a total capitalization of 82.54 B.

Market Cap

61.55 Billion

CME's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.03	0.06
Return On Capital Employed	0.09	0.17
Return On Assets	0.02	0.03
Return On Equity	0.12	0.12

The company has Net Profit Margin of 0.57 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.65 %, which entails that for every 100 dollars of revenue, it generated $0.65 of operating income.

Determining CME's profitability involves analyzing its financial statements and using various financial metrics to determine if CME is a good buy. For example, gross profit margin measures CME's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of CME's profitability and make more informed investment decisions.

Please note, the presentation of CME's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, CME's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of CME's management manipulating its earnings.

Evaluate CME's management efficiency

CME Group has Return on Asset of 0.0184 % which means that on every $100 spent on assets, it made $0.0184 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.123 %, implying that it generated $0.123 on every 100 dollars invested. CME's management efficiency ratios could be used to measure how well CME manages its routine affairs as well as how well it operates its assets and liabilities. At present, CME's Return On Capital Employed is projected to increase slightly based on the last few years of reporting. The current year's Return On Assets is expected to grow to 0.03, whereas Return On Equity is forecasted to decline to 0.12. At present, CME's Non Currrent Assets Other are projected to increase significantly based on the last few years of reporting. The current year's Other Current Assets is expected to grow to about 95.9 B, whereas Other Assets are forecasted to decline to about 127.7 M.

	Last Reported	Projected for Next Year
Book Value Per Share	74.47	38.69
Tangible Book Value Per Share	(11.09)	(11.65)
Enterprise Value Over EBITDA	20.22	14.21
Price Book Value Ratio	2.83	3.80
Enterprise Value Multiple	20.22	14.21
Price Fair Value	2.83	3.80
Enterprise Value	60.2 B	63.3 B

CME Group has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.

Dividend Yield

0.0201

Forward Dividend Yield

0.0201

Forward Dividend Rate

4.6

Beta

0.559

Basic technical analysis of CME Stock

As of the 25th of November, CME shows the Downside Deviation of 0.8673, mean deviation of 0.7295, and Risk Adjusted Performance of 0.1254. CME Group technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm CME Group downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if CME Group is priced adequately, providing market reflects its regular price of 229.37 per share. Given that CME has jensen alpha of 0.1469, we suggest you to validate CME Group's prevailing market performance to make sure the company can sustain itself in the future.

CME's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific CME insiders, such as employees or executives, is commonly permitted as long as it does not rely on CME's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases CME insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Mccourt Timothy Francis over three months ago Disposition of tradable shares by Mccourt Timothy Francis of CME at 217.5 subject to Rule 16b-3
		Julie Winkler over a year ago Acquisition by Julie Winkler of 3808 shares of CME subject to Rule 16b-3
		Julie Winkler over a year ago Payment of 1513 shares by Julie Winkler of CME subject to Rule 16b-3

CME's Outstanding Corporate Bonds

CME issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. CME Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most CME bonds can be classified according to their maturity, which is the date when CME Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	CME GROUP INC Corp Bond US12572QAF28	View
	CME GROUP INC Corp Bond US12572QAH83	View
	CME GROUP INC Corp Bond US12572QAG01	View
	CME GROUP INC Corp Bond US12572QAJ40	View
	CME 265 15 MAR 32 Corp Bond US12572QAK13	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	MGM Resorts International Corp Bond US552953CD18	View

View All CME Corporate Bonds

Understand CME's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing CME's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1254
	Market Risk Adjusted Performance	(1.54)
	Mean Deviation	0.7295
	Semi Deviation	0.6854
	Downside Deviation	0.8673
	Coefficient Of Variation	619.33
	Standard Deviation	0.906
	Variance	0.8208
	Information Ratio	0.0171
	Jensen Alpha	0.1469
	Total Risk Alpha	(0.01)
	Sortino Ratio	0.0179
	Treynor Ratio	(1.55)
	Maximum Drawdown	4.17
	Value At Risk	(1.44)
	Potential Upside	1.58
	Downside Variance	0.7523
	Semi Variance	0.4698
	Expected Short fall	(0.80)
	Skewness	(0.14)
	Kurtosis	(0.30)

	Risk Adjusted Performance	0.1254
	Market Risk Adjusted Performance	(1.54)
	Mean Deviation	0.7295
	Semi Deviation	0.6854
	Downside Deviation	0.8673
	Coefficient Of Variation	619.33
	Standard Deviation	0.906
	Variance	0.8208
	Information Ratio	0.0171
	Jensen Alpha	0.1469
	Total Risk Alpha	(0.01)
	Sortino Ratio	0.0179
	Treynor Ratio	(1.55)
	Maximum Drawdown	4.17
	Value At Risk	(1.44)
	Potential Upside	1.58
	Downside Variance	0.7523
	Semi Variance	0.4698
	Expected Short fall	(0.80)
	Skewness	(0.14)
	Kurtosis	(0.30)

Consider CME's intraday indicators

CME intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of CME stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	40665.19
	Daily Balance Of Power	0.1111
	Rate Of Daily Change	1.0
	Day Median Price	228.5
	Day Typical Price	228.79
	Price Action Indicator	1.04
	Period Momentum Indicator	0.33
	Relative Strength Index	44.03

CME Corporate Filings

F4	12th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
10Q	8th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify
8K	7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
13A	22nd of October 2024 An amended filing to the original Schedule 13G	View Verify

CME time-series forecasting models is one of many CME's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary CME's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

CME Stock media impact

Far too much social signal, news, headlines, and media speculation about CME that are available to investors today. That information is available publicly through CME media outlets and privately through word of mouth or via CME internal channels. However, regardless of the origin, that massive amount of CME data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of CME news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of CME relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to CME's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive CME alpha.

CME Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards CME can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

CME Group Historical Investor Sentiment

Investor biases related to CME's public news can be used to forecast risks associated with an investment in CME. The trend in average sentiment can be used to explain how an investor holding CME can time the market purely based on public headlines and social activities around CME Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

CME's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for CME and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average CME news discussions. The higher the estimate score, the more favorable the investor's outlook on CME.

CME Corporate Directors

Hilda Piell	Chief Human Resource Officer, Senior Managing Director	Profile
Jack Tobin	Chief Accounting Officer, Managing Director	Profile
Derek Sammann	Senior Managing Director - Financial Products and Services	Profile
Julie Winkler	Senior Managing Director - Research and Product Development	Profile

When determining whether CME Group is a strong investment it is important to analyze CME's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CME's future performance. For an informed investment choice regarding CME Stock, refer to the following important reports: