Monday, December 24, 2012

Why CME Group Is Poised to Outperform

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 and see what CAPS investors are saying about the stock right now.

CME facts

Headquarters (founded)

Chicago (1898)

Market Cap

$17.0 billion

Industry

Specialized finance

Trailing-12-Month Revenue

$3.0 billion

Management

CEO Phupinder Gill (since 2012)
CFO James Parisi (since 2004)

Return on Equity (average, past 3 years)

6%

Cash / Debt

$2.1 billion / $2.9 billion

Dividend Yield

3.4%

Competitors

CBOE Holdings (NASDAQ: CBOE  ) LIFFE Holdings
Nasdaq OMX Group (NASDAQ: NDAQ  )

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

On CAPS, 94% of the 823 members who have rated CME believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star prstout, highlighted CME as a particularly timely bargain opportunity:

Sell-off looks over-done. Well managed firm that returns capital to owners (dividends) rather than providing monies to departing owners (share repurchase). With the change in Federal Reserve policy, trading in interest rate futures might see more activity.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong 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 "The 3 Dow Stocks Dividend Investors Need," 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 TrackPoisedTo CAPS account.

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