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.
Is there a buying opportunity in CME Group, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it’s free.
Why Is CME Group Not Exciting?
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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