CME Group Achieves High Rating in Multi-Factor Investor Model

CME Group Inc. secures an 87% rating under the Multi-Factor Investor model, indicating strong interest among professional investors. This rating underscores the stock's potential despite a failure to meet all criteria.

Date: 29-03-2025

AI Rating: 7

Investor Analysis of CME Group Inc.

CME Group Inc. has been rated an impressive 87% using the Multi-Factor Investor model, which is indicative of strong underlying fundamentals and solid valuation metrics. This model emphasizes low volatility, strong momentum, and high net payout yields. An 87% rating suggests that CME is well-regarded in the current market environment among investment gurus.

However, one critical factor stands out—although CME Group passes criteria such as market capitalization and standard deviation, it fails on the final rank criterion. This raises some caution among investors about its overall strength when evaluated against this model.

Additionally, the report highlights that CME Group is a large-cap growth stock within the Investment Services industry, which is generally favorable for long-term investors. The consistency of earnings and stability suggested by passing the market cap and standard deviation tests could attract risk-averse investors looking for lower volatility and steady returns.

While specific key performance indicators such as Earnings Per Share (EPS), Revenue Growth, Net Income, Profit Margins, Free Cash Flow (FCF), and Return on Equity (ROE) are not explicitly mentioned in the report, the overall rating suggests that these metrics are likely performing adequately to garner a high score under the Multi-Factor Investor model.

In summary, CME Group Inc. does present a compelling case for investment due to its strong strategy rating, yet the failure to meet all strategic tests warrants careful consideration. For professional investors, weighing the implications of the failure against the high initial rating will be crucial in making informed decisions.

Stocks: CME