CME Group Inc. (CME): Today's Featured Financial Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

CME Group ( CME) pushed the Financial Services industry higher today making it today's featured financial services winner. The industry as a whole closed the day up 0.9%. By the end of trading, CME Group rose $1.11 (2%) to $56.61 on average volume. Throughout the day, 2.2 million shares of CME Group exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in a price between $55.37-$56.61 after having opened the day at $55.59 as compared to the previous trading day's close of $55.50. Other companies within the Financial Services industry that increased today were: Palmetto ( PLMT), up 6.2%, Investors Capital Holdings ( ICH), up 6.2%, Security National Financial Corporation ( SNFCA), up 5.1%, and CIFC ( DFR), up 4.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

CME Group Inc. operates the CME, CBOT, NYMEX and COMEX futures exchanges worldwide. The company provides a range of products across various asset classes, such as interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather, and real estate. CME Group has a market cap of $18.5 billion and is part of the financial sector. The company has a P/E ratio of 12.5, below the S&P 500 P/E ratio of 17.7. Shares are up 9.5% year to date as of the close of trading on Friday. Currently there are seven analysts that rate CME Group a buy, three analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates CME Group as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial services industry could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial services industry could consider Proshares Short Financials ( SEF).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Novice Trade: CBOE

With $150 Trillion at Stake, Tainted Libor Benchmark Won't Die Quickly

Has Chicago Mercantile Exchange Reached a Bottom?

Bullish and Bearish Reversals for This Week