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With a market cap of $91.5 billion, CME Group Inc. (CME) is the world's largest futures exchange by trading volume and notional value, offering a wide range of products across major asset classes, including interest rates, equities, foreign exchange, energy, agricultural commodities, and metals. It operates key exchanges such as CME, CBOT, NYMEX, and COMEX, facilitating trades through electronic platforms, open outcry, and privately negotiated transactions.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and CME Group fits this criterion perfectly. The Chicago, Illinois-based company also provides clearing and settlement services for exchange-traded and over-the-counter derivatives through CME Clearing and CME Clearing Europe.
Despite a 1.6% decline from its 52-week high of $258.78 recorded in Mar. 4, shares of this firm have gained 6.4% over the past three months, surpassing the broader Financial Select Sector SPDR Fund’s (XLF) 2.5% decline over the same time frame.
In the longer term, CME stock is up 9.6% on a YTD basis, outpacing XLF’s 1.6% gain. However, shares of CME have gained 19.2% over the past 52 weeks, slightly lagging behind XLF’s 21.1% return over the same time frame.
CME has been trading above its 50-day and 200-day moving averages since August 2024, indicating a bullish trend.
Shares of CME Group rose nearly 3% on Feb. 12 after the company reported stronger-than-expected Q4 2024 earnings, with adjusted EPS of $2.52. Revenue also slightly exceeded expectations at $1.5 billion, marking a 4.2% year-over-year increase. Additionally, CME Group highlighted record trading volumes in key asset classes like interest rates and agricultural commodities. Investors also reacted positively to the company’s announcement of a 9% increase in its quarterly dividend to $1.25 per share.
However, CME has lagged behind its rival, Intercontinental Exchange, Inc. (ICE), which surged 22.6% over the past 52 weeks and 14.3% on a YTD basis.
Despite CME’s outperformance relative to the broader sector over the past year, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the 18 analysts covering the stock, and as of writing, the stock is trading below its mean price target of $256.76.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
