We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Should You Stay Invested in CME Group (CME) Stock Now?
Read MoreHide Full Article
CME Group’s (CME - Free Report) compelling product portfolio, global presence, focus on over-the-counter clearing services, effective capital deployment and favorable growth estimates make it worth retaining in one’s portfolio.
CME Group has a decent surprise history, having surpassed earnings estimates in the last seven quarters.
Zacks Rank and Price Movement
CME currently carries a Zacks Rank #3 (Hold). Shares of CME Group have lost 12.6% year to date compared with the industry’s decrease of 28.7%.
Image Source: Zacks Investment Research
Optimistic Growth Projection
The Zacks Consensus Estimate for 2022 earnings is pegged at $7.96, indicating a year-over-year improvement of 19.3% on 7.8% higher revenues of $5.1 billion. The consensus estimate for 2023 earnings is pegged at $8.33, which indicates a year-over-year improvement of about 4.7% on 4.4% higher revenues of $5.3 billion.
The expected long-term earnings growth rate is pegged at 7.8%.
Northbound Estimate Movement
The consensus estimate for 2022 earnings has moved 0.5% north in the past 30 days, reflecting analysts’ optimism.
Growth Drivers
CME Group’s improvement in volumes should continue to benefit from increased volatility that in turn drives clearing and transaction fees. Increased adoption of a greater number of crypto assets with increased interest across the entire crypto-economy should add to the upside.
Focus on improving non-transactional revenues should fuel the top line.
This largest futures exchange in the world, in terms of trading volume as well as notional value traded, boasts a solid market presence with 90% market share of the global futures trading and clearing services. Increasing electronic trading volume adds scalability and hence leverage to CME Group’s operating model.
CME Group’s solid balance leads to adequate financial flexibility. This in turn supports investments in several growth initiatives, including organic market data growth and new product extensions and offerings, driving growth as well as effective capital deployment.
Impressive Dividend History
CME Group has increased dividends at a five-year CAGR (2018-2022) of 8.7%. The dividend yield is 2%, better than the industry average of 1.1%, making the stock an attractive pick for yield-seeking investors.
W.R. Berkley’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 29.95%. Year to date, W.R. Berkley stock has gained 23.9%.
The Zacks Consensus Estimate for WRB’s 2022 and 2023 earnings per share indicates year-over-year increases of 50.6% and 10.4%, respectively.
Arch Capital’s earnings surpassed estimates in three of the last four quarters and missed in one, the average beat being 33.64%. Year to date, ACGL has gained 6.9%.
The Zacks Consensus Estimate for ACGL’s 2022 and 2023 earnings implies a 29.6% and 14.8% year-over-year increase, respectively.
The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average beat being 150.9%. Year to date, the insurer has lost 8.8%.
The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 16.9% and 13.9% north, respectively, in the past seven days.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Why Should You Stay Invested in CME Group (CME) Stock Now?
CME Group’s (CME - Free Report) compelling product portfolio, global presence, focus on over-the-counter clearing services, effective capital deployment and favorable growth estimates make it worth retaining in one’s portfolio.
CME Group has a decent surprise history, having surpassed earnings estimates in the last seven quarters.
Zacks Rank and Price Movement
CME currently carries a Zacks Rank #3 (Hold). Shares of CME Group have lost 12.6% year to date compared with the industry’s decrease of 28.7%.
Image Source: Zacks Investment Research
Optimistic Growth Projection
The Zacks Consensus Estimate for 2022 earnings is pegged at $7.96, indicating a year-over-year improvement of 19.3% on 7.8% higher revenues of $5.1 billion. The consensus estimate for 2023 earnings is pegged at $8.33, which indicates a year-over-year improvement of about 4.7% on 4.4% higher revenues of $5.3 billion.
The expected long-term earnings growth rate is pegged at 7.8%.
Northbound Estimate Movement
The consensus estimate for 2022 earnings has moved 0.5% north in the past 30 days, reflecting analysts’ optimism.
Growth Drivers
CME Group’s improvement in volumes should continue to benefit from increased volatility that in turn drives clearing and transaction fees. Increased adoption of a greater number of crypto assets with increased interest across the entire crypto-economy should add to the upside.
Focus on improving non-transactional revenues should fuel the top line.
This largest futures exchange in the world, in terms of trading volume as well as notional value traded, boasts a solid market presence with 90% market share of the global futures trading and clearing services. Increasing electronic trading volume adds scalability and hence leverage to CME Group’s operating model.
CME Group’s solid balance leads to adequate financial flexibility. This in turn supports investments in several growth initiatives, including organic market data growth and new product extensions and offerings, driving growth as well as effective capital deployment.
Impressive Dividend History
CME Group has increased dividends at a five-year CAGR (2018-2022) of 8.7%. The dividend yield is 2%, better than the industry average of 1.1%, making the stock an attractive pick for yield-seeking investors.
Stocks to Consider
Some better-ranked stocks from the finance sector are W.R. Berkley Corporation (WRB - Free Report) , Arch Capital Group (ACGL - Free Report) and ProAssurance Corporation (PRA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
W.R. Berkley’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 29.95%. Year to date, W.R. Berkley stock has gained 23.9%.
The Zacks Consensus Estimate for WRB’s 2022 and 2023 earnings per share indicates year-over-year increases of 50.6% and 10.4%, respectively.
Arch Capital’s earnings surpassed estimates in three of the last four quarters and missed in one, the average beat being 33.64%. Year to date, ACGL has gained 6.9%.
The Zacks Consensus Estimate for ACGL’s 2022 and 2023 earnings implies a 29.6% and 14.8% year-over-year increase, respectively.
The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average beat being 150.9%. Year to date, the insurer has lost 8.8%.
The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 16.9% and 13.9% north, respectively, in the past seven days.