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CME Group (CME) September ADV Decreases Y/Y, Q3 Volumes Soft
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CME Group Inc. (CME - Free Report) reported unimpressive average daily volume (ADV) for September 2020. Average daily volume of 16.9 million contracts per day was down 14% year over year attributable to lower volumes in four of the six product lines. There were 21 trading days in September this year versus 20 days in September 2019.
Interest rate volume of 4.9 million contracts per day decreased 51%. Energy volume of 2 million contracts decreased 27% year over year. Foreign exchange volumes dropped 5% to 1 million contracts per day. Metals volume of 0.7 million contracts per day decreased 10%. However, Equity index volume of 6.9 million contracts per day increased 75%. Agricultural volume of 1.4 million contracts per day increased 21% year over year.
Q3 Volumes
CME Group also reported third-quarter 2020 volumes.
The company recorded ADV of 15.6 million contracts, down 23% from third-quarter 2019.
Energy volume of 1.8 million contracts decreased 25% from third-quarter 2019. Interest rate volume of 5.3 million contracts per day decreased 51% while Foreign exchange volumes dropped 3% to 0.8 million contracts per day.
However, Metals volume of 0.8 million contracts per day increased 1%. Equity index volume of 5.4 million contracts per day increased 38%. Agricultural volume of 1.4 million contracts per day increased 4% from third-quarter 2019.
Though September volumes decreased, the company’s operating leverage and compelling suit of products are expected to help CME Group record higher volumes in the near term. The company boasts the largest futures exchange globally in terms of trading volume as well as notional value traded. CME group leads with about 90% market share of the global futures trading and clearing services.
Expansion of futures products in the emerging markets plus an increase in non-transaction related opportunities as well as OTC offerings should continue to contribute modestly to its top-line growth in the years ahead. Increasing electronic trading volume adds scalability and hence leverage to CME Group’s operating model. Efforts to expand and cross-sell through strategic alliances, acquisitions, new product initiatives and a strong global presence should also drive growth.
Shares of this Zacks Rank #3 (Hold) futures exchange have underperformed the industry in the past year. The stock has lost 21% compared with the industry’s decline of 1.5%. Nevertheless, its solid fundamentals will likely help the stock regain its growth momentum.
Moody’s surpassed estimates in each of the last four quarters, with the average being 13.81%.
OTC Markets surpassed estimates in three of the last four quarters, with the average earnings beat being 10.54%.
SWK Holdings surpassed estimates in one of the last four quarters, with the average earnings surprise being 106.67%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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CME Group (CME) September ADV Decreases Y/Y, Q3 Volumes Soft
CME Group Inc. (CME - Free Report) reported unimpressive average daily volume (ADV) for September 2020. Average daily volume of 16.9 million contracts per day was down 14% year over year attributable to lower volumes in four of the six product lines. There were 21 trading days in September this year versus 20 days in September 2019.
Interest rate volume of 4.9 million contracts per day decreased 51%. Energy volume of 2 million contracts decreased 27% year over year. Foreign exchange volumes dropped 5% to 1 million contracts per day. Metals volume of 0.7 million contracts per day decreased 10%. However, Equity index volume of 6.9 million contracts per day increased 75%. Agricultural volume of 1.4 million contracts per day increased 21% year over year.
Q3 Volumes
CME Group also reported third-quarter 2020 volumes.
The company recorded ADV of 15.6 million contracts, down 23% from third-quarter 2019.
Energy volume of 1.8 million contracts decreased 25% from third-quarter 2019. Interest rate volume of 5.3 million contracts per day decreased 51% while Foreign exchange volumes dropped 3% to 0.8 million contracts per day.
However, Metals volume of 0.8 million contracts per day increased 1%. Equity index volume of 5.4 million contracts per day increased 38%. Agricultural volume of 1.4 million contracts per day increased 4% from third-quarter 2019.
Though September volumes decreased, the company’s operating leverage and compelling suit of products are expected to help CME Group record higher volumes in the near term. The company boasts the largest futures exchange globally in terms of trading volume as well as notional value traded. CME group leads with about 90% market share of the global futures trading and clearing services.
Expansion of futures products in the emerging markets plus an increase in non-transaction related opportunities as well as OTC offerings should continue to contribute modestly to its top-line growth in the years ahead.
Increasing electronic trading volume adds scalability and hence leverage to CME Group’s operating model. Efforts to expand and cross-sell through strategic alliances, acquisitions, new product initiatives and a strong global presence should also drive growth.
Shares of this Zacks Rank #3 (Hold) futures exchange have underperformed the industry in the past year. The stock has lost 21% compared with the industry’s decline of 1.5%. Nevertheless, its solid fundamentals will likely help the stock regain its growth momentum.
Stocks to Consider
Some better-ranked stocks from the finance sector include Moody’s Corporation (MCO - Free Report) , OTC Markets Group Inc. (OTCM - Free Report) and SWK Holdings Corp (SWKH - Free Report) each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Moody’s surpassed estimates in each of the last four quarters, with the average being 13.81%.
OTC Markets surpassed estimates in three of the last four quarters, with the average earnings beat being 10.54%.
SWK Holdings surpassed estimates in one of the last four quarters, with the average earnings surprise being 106.67%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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