CME Group Inc. (NASDAQ:CME) on the Path to Ruin

CME Group Inc. (NASDAQ:CME) on the Path to Ruin


The CME Group Inc. (CME) shares are trading at lower $167.50 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $188.00.

To add more color to this target, the company’s high over the last year is $225.36 and the low is $131.80. Over the last 52 weeks, CME is down -25.67% while the S&P 500 is up 0.73%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, CME reported a profit of $562.2 million. CME Group Inc. also saw revenues increase to $1.52 billion. In addition, CME has free cash flow of $714.3 million as of 03-2020. The company’s EBITDA came in at $1.07 billion which compares well with its peers.

CME booked profit margins of 45.80%, its Return on Equity (ROE) is 9.00%, and its Return on Assets is 2.60%. All told, it is clear that, CME needs to be on your watchlist.

Find out when CME reaches critical levels. Subscribe to Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CME has a short ratio of 2.99 and outstanding shares of 357.52M.

Company Outlook

CME has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.34 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 6.66. CME Group Inc. CME also noted assets of $137.93 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CME has historically followed its peers on positive news.

All told, CME Group Inc. CME has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CME represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

CME Group Inc. CME is now commanding a market cap of 60.13B and a float of 353.17M. CME is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CME stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in CME, either long or short, and we have not been compensated for this article.