CME Group Stock Discussion

If you invest, you MUST be able to identify a moat.
Here are 5 powerful moat sources:
INTANGIBLE ASSETS:
Example: Brand, Patents, Copyrights
Wide: Coca-Cola
Narrow: Dr. Pepper Snapple
None: United Airlines
SWITCHING COSTS:
It would be expensive in terms of cost, time, or training, to switch to an alternative provider.
Wide: Oracle
Narrow: Salesforce
None: Macy's
NETWORK EFFECT:
A network becomes more powerful as more users join.
Wide: CME Group
Narrow: NYSE Euronext
N...

The company's share price growth mirrors its EPS growth over the past year, with dividends boosting total shareholder returns. Despite potential risks, the company's performance merits long-term attention.

CME Group's lower projected growth might not justify its high P/E ratio. Investors more bullish than analysts could face disappointment if the P/E falls. Current high P/E ratio and slower forecasted earnings growth suggest a potential share price decline, posing a risk to shareholders.

CME Group insiders sell at low prices, implying stock fairly priced at these rates. High insider ownership indicates possible alignment with shareholders' interests, but past share sales advise caution.

The company's profit growth and significant insider ownership are positive indications for the stock's potential performance, making it worth monitoring moving forward. However, the investors should also look out for certain related risks.

Andrew Bond rates CME a sell due to growing competition. The analyst speculates that CME could acquire CBOE following their CEO's departure, despite potential difficulties. Bond suggests investors seek more stable revenue sources for CME during non-turbulent market periods.