Being the largest options and futures exchange in the world, CME’s market cap is $ 78 Bln. The shares almost retested the ATH at $237 and are currently trading at $214. Investors are indeed very happy with this, because they made a lot of money from the stock.
Since July, CME went up with $40 per share. The 20, 50 and 200 mocing averages are all pointing north, a Golden Cross took place in August, the current price is above the shortest MA. All those are strong bullish signals. Other financial stocks are also moving north, which means that investors are possibly trying to diversify their portfolios with shars from the fiancial industry.
CME in particular is interesting, because of its fundamentals. The revenue is $ 5.3 Bln, and it has been growing for almost 20 years in a roll! Operating margin is extraordinary, its 77% and it is more than every single direct competitor of the firm. Its no surprise that the P/E is relative high for the finacnial industry, beacause its 26. It is high becuse of the financial efficiency and profitability of CME. High P/E means that investors love the stock and they have huge positive expectations about the future!
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