【rejecting her twin alphas novel】CME Group (CME) Reports Soft May Volumes, Shares Decline
CME Group Inc
. CME reported unimpressive average daily volume (ADV) for May 2020. Average daily volume of 17.9 million contracts per day was down 25% year over year attributable to lower volumes in five of the six product lines. Therejecting her twin alphas novelre were 20 trading days in May this year versus 22 days in May 2019. Shares of the company lost 1.9% in the day’s trading in response to the soft volumes.
Interest rate volume of 8.2 million contracts per day decreased 41%. Energy volume of 2.4 million contracts decreased 7% year over year. Foreign exchange volumes dropped 22% to 0.6 million contracts per day. Agricultural volume of 1cmillion contracts per day declined 47% year over year while Metals volume of 0.6 million contracts per day decreased 11%. However, Equity index volume of 5.2 million contracts per day increased 23%.
Though May volumes decreased, we expect the company’s operating leverage and compelling suit of products to help CME Group to record higher volumes going forward. CME Group maintains a solid market share of about 90% in global futures trading and clearing services.
Expansion of futures products in the emerging markets plus an increase in non-transaction related opportunities as well as OTC offerings should continue to contribute modestly to its top-line growth in the years ahead.
Increasing electronic trading volume adds scalability and hence leverage to CME Group’s operating model. Efforts to expand and cross-sell through strategic alliances, acquisitions, new product initiatives and a strong global presence should also drive growth.
Shares of CME Group have underperformed the industry year to date. The stock has lost 11% against the industry’s increase of 2.6%. Nevertheless, its solid fundamentals will likely help the stock retain its growth momentum.
CME Group currently carries Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Recently, Nasdaq NDAQ reported missed volumes for the month of May. While U.S. equity options volume increased 17.5% year over year to 181 million contracts, European options and futures volume decreased 37.9% year over year to 5.4 million contracts. MarketAxess Holdings’s MKTX trading volume for May 2020 of $519.7 billion consisted of $229.3 billion in credit volume and $290.5 billion in rates volume.
Another Stock to Consider
Intercontinental Exchange ICE, a leading global operator of regulated exchanges, clearing houses and listings venues, and a provider of data services for commodity, financial, fixed income and equity markets, carries a Zacks Rank #2. The company delivered 4.07% positive earnings surprise in the last reported quarter.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
CME Group Inc. (CME) : Free Stock Analysis Report
Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report
MarketAxess Holdings Inc. (MKTX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
View comments
下一篇:Meritor to Cut Global Salaried Workers on Coronavirus Scare
相关文章:
- A Look At The Fair Value Of Leidos Holdings, Inc. (NYSE:LDOS)
- Netflix poaches CFO from Activision Blizzard - source
- European VC trends in 9 charts
- Sony Pictures Television Channels in Central and Eastern Europe Sold to Antenna Group (EXCLUSIVE)
- Hydro66 Announces Additional Advance Under Convertible Loan
- How Many Insiders Bought Advanced Braking Technology Limited (ASX:ABV) Shares?
- S&P 500 Price Forecast – stock markets find support after initial negativity
- DJ Khaled Is Weight Watchers' Newest Social Media Ambassador
- H2O Innovation Secures 7 New Projects, Totalling $7.6 M and Received Notice of Cancellation for One Project
- Honeywell Earnings, Revenue beat in Q4
相关推荐:
- Dow Inc. (DOW) Gains But Lags Market: What You Should Know
- Cathay Pacific mistakenly sells $16,000 flight for $675
- Lessons to Investors From Bitcoin's First Decade
- Thyssenkrupp in constructive talks with EU on Tata Steel JV
- Are Insiders Buying Arena Events Group plc (LON:ARE) Stock?
- An Intrinsic Calculation For Pacira Pharmaceuticals, Inc. (NASDAQ:PCRX) Shows It’s 34.81% Undervalued
- BRIEF-Bank Of Guiyang Says Prelim 2018 Net Profit Up 13.4 Percent Y/Y At 5.1 Billion Yuan
- Despite Its High P/E Ratio, Is McDonald’s Corporation (NYSE:MCD) Still Undervalued?
- Worldwide Artificial Intelligence in Energy Industry to 2024 - Key Drivers, Challenges and Trends
- Is DigiTouch S.p.A. (BIT:DGT) A Smart Pick For Income Investors?
- Transformative Mega Trends Reshaping the Indian ICT Landscape
- U.S. telehealth companies brace for demand spike as coronavirus spread accelerates
- Ferrari (RACE) Q3 Earnings Beat Estimates
- JPMorgan Increases Stake in China Securities Venture to 71%
- China Is Reopening Its Wet Markets. That's Good
- Trust Stamp Prepares to Pursue Direct Public Listing on Euronext Growth Market
- ETFs Ways to Tap the Rise in Silver Price
- The Bar Harbor Bankshares (NYSEMKT:BHB) Share Price Is Down 38% So Some Shareholders Are Getting Worried
- Were Hedge Funds Right About Automatic Data Processing (ADP)?
- Baker Hughes Snaps Up Compact Carbon Capture For Energy Transition Path