CME - CME Group: A Sleep Well At Night Company To Own

2024-04-18 07:56:32 ET

Summary

• CME Group's stock performance has been underwhelming compared to the market, with low growth expectations and negative sentiment from institutional investors.
• However, there are reasons to consider investing in CME, including the potential for opportunities in the uncertain interest rate environment and the company's strong business model.
• CME has a track record of positive earnings and revenue growth, a diverse customer base, a strong credit rating, and superior net income and operating income margins compared to peers.
• CME's business model is impressive, allowing it to generate earnings in the best of times as well as the worst.

Introduction

CME Group ( CME ) is certainly not a market-darling right now. In a period when SPY returned 9.48%, CME managed a measly 3.90%. An investment in SPY even yields more dividends than a similar one in CME. Should investors consider CME?

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