What To Expect From CME Group Stock?

CME Group’s stock (NYSE: CME) has gained 21% YTD, as compared to the 15% rise in the S&P500 over the same period. Further, at its current price of $203 per share, it is trading 6% below its fair value of $215 – Trefis’ estimate for CME Group’s valuation.

Interestingly, CME Group
CME
stock had a Sharpe Ratio of 0.4 since early 2017, which is lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.