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

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 sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 0.3%. By the end of trading, CME Group fell $1.44 (-2.3%) to $61.14 on average volume. Throughout the day, 2.8 million shares of CME Group exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $61.04-$62.66 after having opened the day at $62.66 as compared to the previous trading day's close of $62.58. Other companies within the Financial sector that declined today were: Walter Investment Management ( WAC), down 20.7%, American Spectrum Realty ( AQQ), down 20%, Homex Development ( HXM), down 9.8%, and Gleacher ( GLCH), down 9.4%.
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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. CME Group has a market cap of $21.06 billion and is part of the financial services industry. The company has a P/E ratio of 23.4, above the S&P 500 P/E ratio of 17.7. Shares are up 23.5% year to date as of the close of trading on Monday. 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 and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Altisource Residential Corporation ( RESI), up 34.3%, Broadway Financial ( BYFC), up 13.3%, OptimumBank Holdings ( OPHC), up 8.3%, and Baldwin & Lyons ( BWINA), up 8.3%, were all gainers within the financial sector with PartnerRe ( PRE) being today's featured financial sector leader.

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

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