CME Group Achieves High Rating with Growth Investor Model

CME Group Inc has earned a 77% rating from a guru strategy focusing on growth stocks, reflecting its strong fundamentals. While the stock hits many growth criteria, it did fail on earnings persistence, indicating potential concerns for investors.

Date: 06-12-2024

AI Rating: 6

The report presents a favorable outlook for CME Group Inc (CME), identifying it as a leading stock among guru strategies that emphasize growth. With a rating of 77%, CME is classified as a strong contender in the Investment Services industry. Investors should note that scores of 80% and above typically suggest significant interest, and CME is close to that threshold.

Among the metrics outlined in the report, several aspects stand out positively:

P/E Ratio: Passed, indicating a reasonable valuation in relation to earnings.
Revenue Growth in Relation to EPS Growth: Passed, suggesting strong sales performance aligned with earnings achievements.
Sales Growth Rate: Passed, highlighting effective revenue generation capabilities.
Current Quarter Earnings: Passed, indicating positive performance in the recent quarter.
Positive Earnings Growth Rate for Current Quarter: Passed, which is a strong indication of momentum.

However, there are areas of concern:

Earnings Growth Rate for the Past Several Quarters: Failed, suggesting inconsistency in earnings growth.
Earnings Persistence: Failed, indicating potential volatility in earnings over time.
Long-Term EPS Growth: Failed, which raises eyebrows for investors focused on sustainable growth.

These mixed results imply that while CME possesses significant strengths, its failure in earnings-related metrics could introduce caution for prospective investors. A key takeaway for investors is that despite the strong growth strategy appeal, the company's recent performance on durability of earnings may warrant closer scrutiny.

Stocks: CME