What changed
$CME — BUY 📊
CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide.
🎯 Q1 FY26 | Rev $2B | EPS $3.36 vs $3.37 🔴 | Margin 69.7%
💡 Consensus expects low-single-digit EPS growth, but CME can deliver 10-15% EPS growth driven by structural volume trends, pricing power, and new product adoption. The market-implied multiple of 20x P/E prices in stagnation, yet Q1 showed 20% EPS growth and volume momentum is likely to continue.
📉 Reward/Risk: 1.65:1
🏢 Business Quality: 9/10
📊 Valuation: fair to cheap — 20x P/E, 5% FCF yield, EV/EBITDA 18x, below historical 5-year average of 25x P/E and peer ICE at 22x; reverse DCF implies 6% FCF...
🔮 Catalyst: Monthly trading volume report for April/May 2026 and Q2 2026 earnings pre-announcement
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/CME0612
Also in play: $ICE $NDAQ $CME $CBOE $MCO $ORCL
Why it matters
CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide.