CME Group is a best-in-class financial exchange with 63% operating margins, a wide economic moat, and a Rule of 40 score of 59 — but at a forward P/E of 20.6x and with only 3.5% upside to the consensus target, the setup offers downside of 8.6% against upside of 3.5%, making the risk/reward unfavorable for new capital at current levels.
Thesis pillars
- Wide Moat Elite Margins→Stable
- Rich Valuation Thin Upside→Stable
- Unfavorable Risk Reward Geometry→Stable
- +1 more pillar — see the Why tab for full reasoning
CME Group Inc. (CME) Stock Analysis
Falling Knife setup · Catalyst-Driven edge
Financial Services · Financial Data & Stock Exchanges
Hold if already holding. Not a fresh buy at $239.80, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-day MA.
CME Group operates four U.S. derivatives exchanges (CME, CBOT, NYMEX, and COMEX) and cash markets for fixed income (BrokerTec) and FX (EBS), offering futures, options, and OTC derivatives across six asset classes to financial institutions, corporations, and professional traders... Read more
Hold if already holding. Not a fresh buy at $239.80, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-day MA. Chart setup: Death cross, below all MAs, RSI 33, MACD bearish. Maintain position. Not compelling to add more. Score 5.8/10, moderate confidence.
Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 16d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.
About CME Group Inc.
About CME Group Inc.
CME Group's four derivatives exchanges — CME, CBOT, NYMEX, and COMEX — set a record average daily volume of 28.1 million contracts in 2025, with interest rates posting a third consecutive year of volume records. BrokerTec and EBS cash markets generated $283.7 million in clearing and transaction fees in 2025. In December 2025, CME Securities Clearing Inc. received SEC approval to become a securities clearing agency ahead of the U.S. Treasury clearing deadline of December 31, 2026.
CME Group earns the majority of its revenue from clearing and transaction fees charged to members and clearing firms across interest rates, equity indexes, FX, agricultural commodities, energy, metals, and cryptocurrencies. One unnamed firm represented 12% of clearing and transaction fees revenue in 2025; the 10-K notes that if this firm were to withdraw, the customer portion of its trading would likely transfer to other clearing firms. Data services revenue derives from real-time, historical, and derived market data distributed via third-party platforms and Google Cloud, where CME Group became the first derivatives marketplace to provide live market data natively as part of a 10-year partnership begun in 2021. The company holds exclusive licenses for S&P 500 futures under the S&P License Agreement (exclusive until one year before termination), for Nasdaq indices through 2039, and for Russell indices through 2037; the Dow Jones License Agreement initial term runs through June 30, 2026, and auto-renews in five-year periods thereafter. Revenue from these index products depends on maintaining exclusivity and on licensing fees paid to the applicable index providers.
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CME Group is subject to CFTC designation as a contract market and derivatives clearing organization, while BrokerTec and EBS carry additional broker-dealer and multilateral trading facility obligations in the U.S., U.K., and EU. BrokerTec Americas' FICC membership is operationally critical: losing it, or failing to meet margin calls to FICC, could impair wholesale participants' willingness to trade on the platform. Certain large clearing firms have sought legislative changes permitting transfer of open positions from exchange-owned clearing houses to clearing firm-controlled facilities — a structural challenge to CME Group's vertically integrated execution-and-clearing model if enacted.
See also: Financial Services · Financial Data & Stock Exchanges
From CME Group Inc.'s most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-07-06Recent Developments — CME Group Inc.
Latest news
- NEWS CME Group (NASDAQ:CME) Shares Gap Down - What's Next? - MarketBeat — MarketBeat negative
- NEWS Raymond James reiterates CME Group stock rating citing volatility - Investing.com — Investing.com neutral
- NEWS Earnings call transcript: CME Group Q1 2026 beats expectations but stock dips - Investing.com — Investing.com positive
- NEWS CME Group is the most oversold financial stock as Q1 earnings roll on - MSN — MSN negative
- NEWS CME Stock Under Pressure After Double Miss - Benzinga — Benzinga negative
Generated 2026-07-06T08:31:35Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerone firm (12% of clearing and transaction fees)12%10-K Item 1: 'One firm represented 12% of our clearing and transaction fees revenue for 2025'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $239.80, but acceptable to hold if already in. Reasons: Negative momentum; Below 200-day MA. Chart setup: Death cross, below all MAs, RSI 33, MACD bearish. Maintain position. Not compelling to add more. Target $271.02 (+13.0%), stop $220.04 (−9.0%), A.R:R 1.9:1. Score 5.8/10, moderate confidence.
Take-profit target: $271.02 (+14.5% upside). Target $271.02 (+13.0%), stop $220.04 (−9.0%), A.R:R 1.9:1. Stop-loss: $220.04.
Negative momentum; Below 200-day MA.
CME Group Inc. trades at a P/E of 20.2 (forward 18.3). TrendMatrix value score: 4.4/10. Verdict: Hold.
21 analysts cover CME with a consensus score of 3.4/5. Average price target: $301.
What does CME Group Inc. do?CME Group operates four U.S. derivatives exchanges (CME, CBOT, NYMEX, and COMEX) and cash markets for fixed income...
CME Group operates four U.S. derivatives exchanges (CME, CBOT, NYMEX, and COMEX) and cash markets for fixed income (BrokerTec) and FX (EBS), offering futures, options, and OTC derivatives across six asset classes to financial institutions, corporations, and professional traders worldwide. Revenue is primarily from clearing and transaction fees, with one firm representing 12% of those fees in 2025; average daily volume reached a record 28.1 million contracts in 2025.