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.
If You Invested $1000 in CME Group a Decade Ago, This is How Much It'd Be Worth Now
Read MoreHide Full Article
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in CME Group (CME - Free Report) ten years ago? It may not have been easy to hold on to CME for all that time, but if you did, how much would your investment be worth today?
CME Group's Business In-Depth
With that in mind, let's take a look at CME Group's main business drivers.
Formed in 2007 by the merger of the Chicago Mercantile Exchange (CME - Free Report) and the Chicago Board of Trade (CBOT), CME Group is the largest futures exchange in the world in terms of trading volume as well as notional value traded. The Chicago Mercantile Exchange was originally formed as a non-profit organization in 1898, but was converted to a for-profit company in 2000. It became the first publicly traded financial exchange in the U.S. in Dec 2002. CBOT, established in 1848, is a leading futures and options exchange. In Apr 2005, CBOT converted into a for-profit stock-based holding company and for-profit membership exchange subsidiary.
CME Group offers a broad range of products covering major asset classes, based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities and metals. Trades are executed through CME Group's electronic trading platforms, open outcry and privately negotiated transactions. CME Group also operates one of the world's leading central counterparty clearing providers through CME Clearing and CME Clearing Europe, which offer clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives.
Apart from CME and CBOT, the company operates New York Mercantile Exchange, Inc. (NYMEX) and Commodity Exchange, Inc. (COMEX), CME Clearing Europe Limited (CMECE) and CME Europe Limited (CME Europe). The company reports the results of its operations as one operating segment mainly comprised of CME, CBOT, NYMEX and COMEX.
CME Group’s majority revenues are derived from clearing and transaction fees. These fees include electronic trading fees, surcharges for privately negotiated transactions and other volume-related charges for exchange-traded and cleared swaps contracts. The company's product line includes Interest-rate trading, Energy and Equity trading contracts, Foreign exchange, Agricultural commodities and Metal.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in CME Group a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2013 would be worth $2,838.14, or a gain of 183.81%, as of August 11, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 164.21% and gold's return of 40% over the same time frame.
Analysts are anticipating more upside for CME.
CME Group’s strong market position driven by varied derivative product lines bodes well. Efforts to expand and cross sell through strategic alliances, acquisitions, new product initiatives and a stable global presence bode well. Product innovation and growing proportion of volume from customers outside the United States have been aiding results. The company beat the consensus mark for earnings in the second quarter. Shares of CME Group have outperformed its industry year to date. Escalating expenses due to higher technology cost are likely to put pressure on the company's margin expansion. Diversified product portfolio is significantly exposed to volatile interest rate, firm government regulations and limited credit availability in unstable capital and credit market. Also, stiff competition poses financial risk for the company.
The stock has jumped 11.78% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2023; the consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
If You Invested $1000 in CME Group a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in CME Group (CME - Free Report) ten years ago? It may not have been easy to hold on to CME for all that time, but if you did, how much would your investment be worth today?
CME Group's Business In-Depth
With that in mind, let's take a look at CME Group's main business drivers.
Formed in 2007 by the merger of the Chicago Mercantile Exchange (CME - Free Report) and the Chicago Board of Trade (CBOT), CME Group is the largest futures exchange in the world in terms of trading volume as well as notional value traded. The Chicago Mercantile Exchange was originally formed as a non-profit organization in 1898, but was converted to a for-profit company in 2000. It became the first publicly traded financial exchange in the U.S. in Dec 2002. CBOT, established in 1848, is a leading futures and options exchange. In Apr 2005, CBOT converted into a for-profit stock-based holding company and for-profit membership exchange subsidiary.
CME Group offers a broad range of products covering major asset classes, based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities and metals. Trades are executed through CME Group's electronic trading platforms, open outcry and privately negotiated transactions. CME Group also operates one of the world's leading central counterparty clearing providers through CME Clearing and CME Clearing Europe, which offer clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives.
Apart from CME and CBOT, the company operates New York Mercantile Exchange, Inc. (NYMEX) and Commodity Exchange, Inc. (COMEX), CME Clearing Europe Limited (CMECE) and CME Europe Limited (CME Europe). The company reports the results of its operations as one operating segment mainly comprised of CME, CBOT, NYMEX and COMEX.
CME Group’s majority revenues are derived from clearing and transaction fees. These fees include electronic trading fees, surcharges for privately negotiated transactions and other volume-related charges for exchange-traded and cleared swaps contracts. The company's product line includes Interest-rate trading, Energy and Equity trading contracts, Foreign exchange, Agricultural commodities and Metal.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in CME Group a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2013 would be worth $2,838.14, or a gain of 183.81%, as of August 11, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 164.21% and gold's return of 40% over the same time frame.
Analysts are anticipating more upside for CME.
CME Group’s strong market position driven by varied derivative product lines bodes well. Efforts to expand and cross sell through strategic alliances, acquisitions, new product initiatives and a stable global presence bode well. Product innovation and growing proportion of volume from customers outside the United States have been aiding results. The company beat the consensus mark for earnings in the second quarter. Shares of CME Group have outperformed its industry year to date. Escalating expenses due to higher technology cost are likely to put pressure on the company's margin expansion. Diversified product portfolio is significantly exposed to volatile interest rate, firm government regulations and limited credit availability in unstable capital and credit market. Also, stiff competition poses financial risk for the company.
The stock has jumped 11.78% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2023; the consensus estimate has moved up as well.