From Nasdaq:

CME Group (CME) is expected to experience growth due to its strong global presence, compelling product portfolio, and over-the-counter clearing services. The largest futures exchange worldwide, CME has consistently delivered earnings surprises, with an 8.2% growth in earnings over the last 5 years. The company is further poised for a 2024 earnings growth of 2.6% on revenues of $5.8 billion. The projections for its long-term earnings growth rate are also favorable, indicating an increase at a three-year CAGR of 4.4%. CME’s stock has also gained 8.3% in the past six months, outperforming the Finance sector.

The future looks promising for CME Group, with a focus on organic growth. Increased volatility contributes to trading volumes, which then drive clearing and transaction fees. The company also boasts a 90% market share of global futures trading and clearing services and is experiencing growth in electronic trading volume and the adoption of crypto assets. Additionally, CME’s investments are showing desirable results, further supporting its market data growth and product expansion.

Investors seeking top-ranked stocks in the finance sector can also consider MarketAxess (MKTX), Coinbase Global (COIN), and Chubb Limited (CB), in addition to CME Group. Each of these stocks carries a Zacks Rank #2 (Buy). CME’s dividend yield is 2.2%, higher than the industry average of 1.6%, adding to its appeal for yield-seeking investors. Notably, the stock pays five dividends per year, with the fifth being variable and based on excess cash flow in the year. Additionally, CME has maintained a free cash flow conversion of more than 85% over the last several quarters, reflecting its solid earnings.



Read more: Here’s Why CME Group (CME) Deserves a Spot in Your Portfolio