CME Group Stock Has 15% Upside

CME Group Stock Has 15% Upside

BRAZIL - 2019/07/24: In this photo illustration a CME Group logo seen displayed on a smartphone. ... [+] (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)



SOPA Images/LightRocket via Getty Images

We believe that CME Group's stock (NASDAQ: CME) has a 15% upside to its pre-crisis peak in the near term. CME trades at $182 currently and it has gained 9% in value so far this year. It traded at a pre-Covid high of $208 in February and is 12% above that level now. Also, CME stock has gained 30% from the low of $140 seen in March 2020, after the multi-billion dollar stimulus package announced by the U.S. government, which has helped the stock market recover to a large extent. The stock is lagging the broader markets by a huge margin (S&P 500 is up about 65% since March lows), as investors are concerned about the decline in its Q2 and Q3 revenues – the top-line has dropped 11% to a consolidated figure of $2.26 billion for the last 2 quarters, as compared to the figure of $2.55 billion a year ago.



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CME Group