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CME Group (CME) December ADV Up Y/Y, Q4 & 2021 ADV Robust
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CME Group Inc. (CME - Free Report) reported a solid average daily volume (ADV) for December 2021. The average daily volume of 18 million contracts per day was up 26% year over year, attributable to higher volumes in three product lines. There were 22 trading days in December this year versus 21 days in December 2020.
Interest rate volume of 7.1 million contracts per day increased 41%. Equities volume of 6.8 million was up 45% while Energy volume of 1.8 million contracts increased 5% year over year. Foreign exchange and Metals volumes dropped 11% each to 0.9 million and 0.5 million, respectively. Agricultural volume of 1 million contracts per day declined 17%.
Concurrently, this largest futures exchange in the world in terms of trading volume as well as notional value traded reported record volumes for the fourth quarter as well as full-year 2021. ADV for the fourth quarter was 20.5 million, up 26%, attributable to higher volumes in three of the six product lines. For the full year, ADV was 19.6 million, up 3%, attributable to higher volumes in one of the six product lines.
CME Group’s operating leverage and compelling suite of products should continue to aid the company in reporting higher volumes going forward. CME 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 gained 17.6% in the past year compared with the industry’s increase of 22.1%. Solid fundamentals will likely help the stock trend higher.
Image Source: Zacks Investment Research
CME Group currently carries a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for OTC Markets Group’s 2022 earnings has moved up 14.9% in the past 60 days. The expected long-term earnings growth rate is pegged at 9%. OTCM sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Coinbase’s 2022 earnings has moved up 0.6% in the past 30 days. It has an impressive Growth Score of B. COIN carries Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Intercontinental’s 2022 earnings has moved up 0.7% in the past 30 days and implies a 9.9% year-over-year increase. The expected long-term earnings growth rate is pegged at 10.3%, better than the industry average of 9.5%. ICE carries a Zacks Rank #2.
Shares of OTC Markets and Intercontinental have gained 66.6% and 15.8% respectively, in a year while that of Coinbase Global lost 23.8% in the same time frame.
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CME Group (CME) December ADV Up Y/Y, Q4 & 2021 ADV Robust
CME Group Inc. (CME - Free Report) reported a solid average daily volume (ADV) for December 2021. The average daily volume of 18 million contracts per day was up 26% year over year, attributable to higher volumes in three product lines. There were 22 trading days in December this year versus 21 days in December 2020.
Interest rate volume of 7.1 million contracts per day increased 41%. Equities volume of 6.8 million was up 45% while Energy volume of 1.8 million contracts increased 5% year over year. Foreign exchange and Metals volumes dropped 11% each to 0.9 million and 0.5 million, respectively. Agricultural volume of 1 million contracts per day declined 17%.
Concurrently, this largest futures exchange in the world in terms of trading volume as well as notional value traded reported record volumes for the fourth quarter as well as full-year 2021. ADV for the fourth quarter was 20.5 million, up 26%, attributable to higher volumes in three of the six product lines. For the full year, ADV was 19.6 million, up 3%, attributable to higher volumes in one of the six product lines.
CME Group’s operating leverage and compelling suite of products should continue to aid the company in reporting higher volumes going forward. CME 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 gained 17.6% in the past year compared with the industry’s increase of 22.1%. Solid fundamentals will likely help the stock trend higher.
CME Group currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks include OTC Markets Group (OTCM - Free Report) , Coinbase Global (COIN - Free Report) and Intercontinental Exchange (ICE - Free Report) .
The Zacks Consensus Estimate for OTC Markets Group’s 2022 earnings has moved up 14.9% in the past 60 days. The expected long-term earnings growth rate is pegged at 9%. OTCM sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Coinbase’s 2022 earnings has moved up 0.6% in the past 30 days. It has an impressive Growth Score of B. COIN carries Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Intercontinental’s 2022 earnings has moved up 0.7% in the past 30 days and implies a 9.9% year-over-year increase. The expected long-term earnings growth rate is pegged at 10.3%, better than the industry average of 9.5%. ICE carries a Zacks Rank #2.
Shares of OTC Markets and Intercontinental have gained 66.6% and 15.8% respectively, in a year while that of Coinbase Global lost 23.8% in the same time frame.