Since July 2025, CME Group has been in a holding pattern, posting a small loss of 4.4% while floating around $264.82. The stock also fell short of the S&P 500’s 11.1% gain during that period.
We're swiping left on CME Group for now. Here are two reasons we avoid CME and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
Unfortunately, CME Group’s 5.4% annualized revenue growth over the last five years was tepid. This fell short of our benchmark for the financials sector.
2. EPS Barely Growing
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
CME Group’s EPS grew at an unimpressive 9.8% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 5.4% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.
Final Judgment
CME Group isn’t a terrible business, but it doesn’t pass our bar. With its shares lagging the market recently, the stock trades at 22.8× forward P/E (or $264.82 per share). This valuation tells us a lot of optimism is priced in - we think there are better stocks to buy right now. We’d recommend looking at an all-weather company that owns household favorite Taco Bell.
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