CME Group (CME - Free Report) closed the most recent trading day at $170.14, moving +1.02% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.5%. Elsewhere, the Dow gained 0.54%, while the tech-heavy Nasdaq added 0.76%.
Prior to today's trading, shares of the parent company of the Chicago Board of Trade and other exchanges had lost 5.06% over the past month. This has lagged the Finance sector's gain of 1.8% and the S&P 500's gain of 2.53% in that time.
CME will be looking to display strength as it nears its next earnings release. On that day, CME is projected to report earnings of $1.64 per share, which would represent a year-over-year decline of 11.83%. Our most recent consensus estimate is calling for quarterly revenue of $1.21 billion, up 9.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.07 per share and revenue of $4.89 billion. These totals would mark changes of +3.67% and +13.45%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CME. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.04% lower. CME is currently a Zacks Rank #3 (Hold).
Investors should also note CME's current valuation metrics, including its Forward P/E ratio of 23.82. Its industry sports an average Forward P/E of 21.54, so we one might conclude that CME is trading at a premium comparatively.
Investors should also note that CME has a PEG ratio of 2.13 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CME's industry had an average PEG ratio of 2.06 as of yesterday's close.
The Securities and Exchanges industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.