CME Group Inc Achieves High Ratings via Growth Investor Model

CME Group Inc has garnered a high rating of 62% according to a recent report focusing on growth stocks. The analysis suggests that while CME passes multiple growth criteria, challenges remain in certain growth metrics, which may influence investor sentiment and stock performance.

Date: 14-12-2024

AI Rating: 5

The report on CME Group Inc reveals that the stock is rated highly (62%) using the Growth Investor model based on Martin Zweig's strategy. This strategy emphasizes persistent growth in earnings and sales, reasonable valuations, and low debt.

Earnings Per Share (EPS)
The report indicates that CME passes the criteria assessing EPS growth for the current quarter. This suggests that the company is capable of generating positive earnings, which is favorable for current investor confidence.

Revenue Growth
While CME passes the Revenue Growth in relation to EPS Growth test, the overall sales growth rate is flagged as a failure. This inconsistency could raise concerns among investors about the company’s ability to capitalize on revenue-generating opportunities.

Net Income and Profit Margins
There is no specific mention of net income or profit margins in the report. However, the failure in long-term earnings growth and earnings persistence could suggest challenges in maintaining strong profit margins in the future.

Free Cash Flow (FCF)
The report does not provide any details related to free cash flow, which investors often consider for evaluating a company’s financial health and investment potential.

Return on Equity (ROE)
No information regarding return on equity is included in the report. Investors typically look for a solid ROE, as it reflects the company’s efficiency in generating profit from shareholders' equity.

Overall, despite the high score, the failures in certain growth metrics may lead investors to approach CME with caution. Variances in earnings growth, combined with sales growth concerns, could negatively impact stock prices.

Stocks: CME