Summary: CME Group stock is positioned for growth, with strong earnings, dividends, and market share.

From Nasdaq: 2024-04-05 12:00:00

CME Group is positioned for growth with a strong global presence and product portfolio. The stock has gained 0.7% year to date, with a history of delivering earnings surprises and 8.7% earnings growth over the last five years. The Zacks Consensus Estimate for 2024 EPS is $9.60, with a 2.8% increase in revenue.

CME Group’s organic growth is supported by increasing clearing and transaction fees, with a 90% market share of global futures trading. The company expects its core expenses to be $1.585 billion in 2024. A solid capital position allows for investments in market data growth and product expansion.

CME Group has been increasing dividends at a 5-year CAGR of 8%, with a dividend yield of 2.2%. Shareholders benefit from the company’s focus on cost management, strong earnings, and free cash flow conversion of over 85%. The stock is an attractive pick for yield-seeking investors.

Some better-ranked stocks in the finance sector include Coinbase Global, Burford Capital, and AssetMark Financial, each sporting a Zacks Rank #1 (Strong Buy). Coinbase has seen a 44.2% gain year to date, with a Zacks Consensus Estimate for 2024 EPS indicating a 386.5% year-over-year increase. Burford Capital and AssetMark Financial also show promising growth potential.

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Read more at Nasdaq MarketSite: Here’s Why You Should Hold CME Group (CME) Stock for Now