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 down 0.5%. By the end of trading, CME Group rose $1.06 (1.7%) to $64.13 on heavy volume. Throughout the day, 2,622,004 shares of CME Group exchanged hands as compared to its average daily volume of 1,695,900 shares. The stock ranged in a price between $62.44-$64.37 after having opened the day at $62.77 as compared to the previous trading day's close of $63.07. Other companies within the Financial Services industry that increased today were: Credit Acceptance Corporation ( CACC), up 2.7%, Atlanticus Holdings ( ATLC), up 2.7%, US Global Investors ( GROW), up 2.6% and Investors Capital Holdings ( ICH), up 2.2%.
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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 $21.5 billion and is part of the financial sector. The company has a P/E ratio of 24.6, above the S&P 500 P/E ratio of 17.7. Shares are up 26.9% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate CME Group a buy, 3 analysts rate it a sell, and 5 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 negative front, Orix Corporation ( IX), down 9.5%, Nomura Holdings ( NMR), down 7.0%, Federal Agricultural Mortgage ( AGM.A), down 6.2% and Noah Holdings ( NOAH), down 5.0% , were all laggards within the financial services industry with Morgan Stanley ( MS) being today's financial services industry laggard.

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).

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