Stocks

Headlines

CME Group Inc. Achieves High Rating in Growth Investor Model

CME Group Inc. has received a strong 62% rating from a recent report using the Growth Investor model by Martin Zweig. This growth stock shows promise with positive earnings growth potential despite some weaknesses.

Date: 
AI Rating:   6

The analysis of CME Group Inc. reveals several critical insights regarding its financial performance, particularly under the Growth Investor model.

  • Earnings Per Share (EPS): The current quarter's earnings indicate positive growth, with the EPS growth for the current quarter greater than that of the prior three quarters. However, the long-term EPS growth has failed to meet expectations.
  • Revenue Growth: Interestingly, CME Group Inc. has demonstrated revenue growth in relation to its earnings per share growth, which is a positive sign, but this is contrasted by a reported failure in the sales growth rate.
  • Net Income: The report does not provide specific numbers for net income, but the positive earnings growth in the current quarter suggests that net income may be on a beneficial trend.
  • Profit Margins: The report lacks specific details regarding profit margins (gross, operating, or net), which limits a thorough analysis of CME's potential profitability.
  • Free Cash Flow (FCF): There is no mention of free cash flow, which is critical for assessing CME's liquidity and capacity for growth.
  • Return on Equity (ROE): Similarly, ROE data is absent, leaving uncertainty regarding the efficiency with which CME is generating profits from its equity base.

Despite the presence of both PASSES and FAILS in the criteria evaluated, the overall rating of 62% indicates that CME Group Inc. is being recognized positively within the Growth Investor strategy framework. The adequate P/E ratio along with positive earnings growth in the current quarter may contribute to investor interest, suggesting a cautiously optimistic outlook. Yet, the failed metrics on sales growth and EPS growth relative to prior performance could prompt some investors to reconsider their positions or expectations.

Stocks:  CME