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4-Star Stocks Poised to Pop: CME Group

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, derivatives exchange giant CME Group (Nasdaq: CME  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at CME's business and see what CAPS investors are saying about the stock right now.

CME facts

Headquarters (Founded) Chicago (1898)
Market Cap $19.2 billion
Industry Specialized finance
Trailing-12-Month Revenue $3.3 billion
Management CEO Craig Donohue (since 2007)
CFO James Parisi (since 2004)
Return on Equity (Average, Past 3 Years) 5.9%
Cash/Debt $1.1 billion / $2.1 billion
Dividend Yield 3.1%
Competitors CBOE Holdings
LIFFE Holdings
Nasdaq OMX Group

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 794 members who have rated CME believe the stock will outperform the S&P 500 going forward.  

Just last week, one of those bulls, fellow Fool Bryan Hinmon (TMF42), listed five good reasons to look into CME:

1. Risk management will continue to rise in prominence, and futures volumes will reflect that.

2. Have you seen the profitability of this business? Geez.

3. Scale, network, and reputational advantages. Scale and network look intact after NYSE/Deutsche Boerse collapse. MF Global impact on reputation likely temporary.

4. Return of capital to shareholders -- see new dividend policy.

5. Asset light business, great tough-to-replicate properties.

Of course, despite its four-star rating, CME may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 11 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of CME. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

10/21/2016 4:00 PM
CME $104.09 Up +0.44 +0.42%
CME Group CAPS Rating: *****