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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

CME Group

(

CME

) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified CME Group as such a stock due to the following factors:

  • CME has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $159.7 million.
  • CME traded 68,008 shares today in the pre-market hours as of 9:14 AM.
  • CME is down 3.2% today from Friday's close.

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More details on CME:

CME Group Inc. operates the CME, CBOT, NYMEX COMEX, and KCBT futures exchanges worldwide. It operates CBOT exchange, a marketplace for trading agricultural and the U.S. The stock currently has a dividend yield of 2.1%. CME has a PE ratio of 29.4. Currently there are 6 analysts that rate CME Group a buy, 1 analyst rates it a sell, and 5 rate it a hold.

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The average volume for CME Group has been 1.6 million shares per day over the past 30 days. CME Group has a market cap of $28.1 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.12 and a short float of 2.3% with 3.29 days to cover. Shares are up 65.4% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CME Group as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 51.72% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CME should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.4%. Since the same quarter one year prior, revenues slightly increased by 4.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for CME GROUP INC is rather high; currently it is at 65.14%. Regardless of CME's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CME's net profit margin of 32.54% significantly outperformed against the industry.
  • Although CME's debt-to-equity ratio of 0.13 is very low, it is currently higher than that of the industry average. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.14 is very weak and demonstrates a lack of ability to pay short-term obligations.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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