Upgrades - UBS upgraded UiPath (PATH) to Neutral from Sell with a price target of $17, up from $10, citing that near-term GenAI risk fears appear "overdone" [2] - Needham upgraded TransMedics (TMDX) to Buy from Hold with a price target of $148, indicating that U.S. sales are likely to beat consensus in Q3 according to their transplant tracker [2] - Deutsche Bank upgraded CME Group (CME) to Buy from Hold with a price target of $300, up from $266, believing that organic growth initiatives will drive earnings growth into the high single digits by 2026 [3] - Roth Capital upgraded Core Scientific (CORZ) to Buy from Neutral with a price target of $23.50, up from $17, assuming that the takeover by CoreWeave (CRWV) will not go through [4] - JPMorgan upgraded LendingClub (LC) to Overweight from Neutral with a price target of $22, up from $17, noting that the company has "more ways than ever" to grow originations and profits [5] Downgrades - Mizuho downgraded Enphase Energy (ENPH) to Neutral from Outperform with a price target of $37, down from $50, due to reduced residential solar demand and lower market share [6] - Mizuho downgraded Hologic (HOLX) to Neutral from Outperform with a price target of $78 after the company agreed to be acquired in a transaction valued at up to $79 per share [6] - Wells Fargo downgraded Tegna (TGNA) to Equal Weight from Overweight with an unchanged price target of $22, citing the pending Nexstar (NXST) acquisition [6] - H.C. Wainwright downgraded Avadel Pharmaceuticals (AVDL) to Neutral from Buy with a price target of $20, down from $36, following a definitive agreement to be acquired by Alkermes (ALKS) [6] - Citi downgraded Arcturus Therapeutics (ARCT) to Neutral from Buy with a price target of $12, down from $49, due to disappointing results from the ARCT-032 Phase 2 trial [6]

Core Insights - Albert Anthony is a Croatian-American business author and media contributor with a focus on real estate investment trusts (REITs) [1] - He has a background in IT analysis for Fortune 500 companies and experience in financial services with Charles Schwab [1] - Anthony is launching a book on REITs in 2025 and manages his own equities research firm remotely [1] Background and Experience - Albert Anthony has over 1,000 followers on Seeking Alpha and writes for various financial platforms [1] - He has participated in numerous business and innovation conferences in the EU and has a degree from Drew University [1] - Currently enrolled in the CMSA certification program at the Corporate Finance Institute in Vancouver [1] Media and Digital Presence - Anthony is active in digital media, including a YouTube channel focused on REITs [1] - He has appeared in regional media channels in Croatia and has had extra roles in over five productions [1] - The author does not engage with non-publicly traded companies or small-cap stocks [1]

Group 1 - Top Wall Street analysts have revised their outlook on several prominent companies, indicating a shift in market sentiment [1] - The article suggests that investors should consider buying CME stock based on analysts' recommendations [1]

Core Insights - CME Group Inc. reported third-quarter 2025 adjusted earnings per share of $2.68, beating the Zacks Consensus Estimate by 1.9%, with the bottom line unchanged year over year [1][9] - The quarterly results showed a decline in revenues primarily due to lower clearing and transaction fees, as well as reduced trading volumes [1][2] Financial Performance - CME Group's revenues for the quarter were $1.5 billion, a decrease of 2.9% year over year, matching the Zacks Consensus Estimate [2][9] - Total expenses rose by 0.8% year over year to $565 million, driven by increased compensation, technology, and professional fees, exceeding the estimate of $505.6 million [2] - Operating income fell by 5% from the prior-year quarter to $972.6 million, below the estimate of $1 billion [3] - Average daily volume (ADV) reached a record 25.3 million contracts, down 10.4% year over year, with declines across various product lines [3][9] Financial Update - As of September 30, 2025, CME Group had $3.6 billion in cash and marketable securities, an 8.5% decrease from the end of 2024 [4] - Long-term debt increased to $3.4 billion, up 27.7% from the end of 2024 [4] - Shareholders' equity stood at $28.2 billion, reflecting a 6.4% increase from the end of 2024 [4] Capital Deployment - CME Group paid out $3.5 billion in dividends during the first nine months of 2025, totaling $29.5 billion since the implementation of the variable dividend policy in early 2012 [5]

Core Insights - CME Group reported $1.54 billion in revenue for Q3 2025, a 3% year-over-year decline, with EPS remaining flat at $2.68 compared to the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.53 billion by 0.81%, while the EPS surpassed the consensus estimate of $2.63 by 1.9% [1] Financial Performance Metrics - Average daily volume was 25.32 million, slightly below the estimated 26.2 million [4] - Average rates per contract varied across categories, with interest rates at $0.49 (vs. $0.48 estimate), equity indexes at $0.65 (matching estimate), foreign exchange at $0.84 (vs. $0.79 estimate), energy at $1.21 (vs. $1.19 estimate), and agricultural commodities at $1.42 (vs. $1.40 estimate) [4] - Average daily volume for metals was 825 thousand, below the estimated 843.54 thousand [4] - Revenues from clearing and transaction fees were $1.23 billion, below the $1.25 billion estimate, reflecting a year-over-year decline of 5.3% [4] - Revenues from other sources were $107.2 million, slightly below the $110.22 million estimate, with a year-over-year decline of 1.7% [4] - Market data and information services revenues were $202.5 million, exceeding the $195.57 million estimate, with a year-over-year increase of 13.6% [4] Stock Performance - CME shares returned +2.5% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - CME Group generated revenue of $1.5 billion in Q3 2025, down 3% from Q3 2024, with an average rate per contract of $0.702, resulting in clearing and transaction fees of $1.2 billion [9][10] - Market data revenue reached a record $203 million, up 14% year-over-year [9] - Adjusted operating income was $1.1 billion, reflecting a 68.4% operating margin, with adjusted net income at $978 million and adjusted diluted earnings per share at $2.68, both slightly above the previous year's figures [10][11] Business Line Data and Key Metrics Changes - The average daily volume for the quarter was 25.3 million contracts, marking the second highest in CME's history for Q3 [5] - The crypto complex traded a record 340,000 contracts per day, up over 225% compared to the previous year, driven by the success of Solana and XRP futures [6] - New products such as credit futures and one-ounce gold futures also achieved record volumes in Q3 [6][7] Market Data and Key Metrics Changes - Open interest at the end of September reached 126 million contracts, the highest in five years, with continued growth into October [5] - CME maintained a 76% market share in WTI futures, up from 74% in the previous quarter, and 91% in WTI options [61] Company Strategy and Development Direction - CME Group is focused on innovation and expanding product offerings, including the introduction of 24/7 trading for cryptocurrency futures and options starting early next year [8] - The partnership with FanDuel aims to enhance retail strategy, potentially reaching 13 million accounts [14][16] - The company is also extending its FTSE Russell Index derivatives license through 2037 to ensure continuity and value for clients [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth despite a general pullback in volatility across asset classes [5] - The focus remains on driving earnings growth through customer base expansion and innovative products [11] - Management acknowledged the importance of credibility in markets and the potential for growth in retail offerings without necessarily pursuing acquisitions [17] Other Important Information - CME Group's adjusted effective tax rate was 22.6% for the quarter [10] - Capital expenditures for Q3 were approximately $19 million, with cash at the end of the quarter around $2.6 billion [10] Q&A Session Summary Question: Can you talk about your long-term retail strategy? - Management highlighted the importance of the partnership with FanDuel and the potential to access 13 million accounts, emphasizing a strategy focused on distribution and efficiencies [14][16] Question: Is CME considering offering sports event contracts? - Management indicated readiness to offer sports event contracts in collaboration with FanDuel, pending government approval [24][39] Question: What is the outlook for energy volumes? - Management noted a slight decrease in energy volumes but highlighted growth in crude and natural gas markets, particularly in Europe and Asia [61] Question: How are you thinking about capital deployment after the oyster sale? - Management stated that proceeds from the sale were about $1.55 billion, with plans to review potential uses of capital with the board [67][69] Question: Can you elaborate on the 24/7 trading initiative? - Management confirmed plans for 24/7 trading of cryptocurrency futures by 2026, with ongoing assessments for other asset classes based on client demand [80][82]

Financial Data and Key Metrics Changes - CME Group generated revenue of $1.5 billion in Q3 2025, down 3% from Q3 2024, with an average rate per contract of $0.702, resulting in clearing and transaction fees of $1.2 billion [9][10] - Market data revenue reached a record $203 million, up 14% year-over-year [9] - Adjusted net income was $978 million, with adjusted diluted earnings per share at $2.68, both slightly above the previous year's figures [10][11] - Adjusted operating income was $1.1 billion, reflecting a 68.4% operating margin for the quarter [9] Business Line Data and Key Metrics Changes - The average daily volume for the quarter was 25.3 million contracts, the second highest in CME Group's history for Q3 [5] - The crypto complex traded a record 340,000 contracts per day, up over 225% compared to the previous year, driven by the success of Solana and XRP futures [6] - FX Spot+ set new volume records every month in Q3, indicating strong demand for new trading opportunities [7] Market Data and Key Metrics Changes - CME Group saw significant growth in open interest, reaching 126 million contracts at the end of September, the highest in five years [5] - WTI futures market share increased to 76% in Q3, up from 74% in the previous quarter, while WTI options maintained a 91% market share [61] Company Strategy and Development Direction - CME Group is focused on innovation and expanding product offerings, including the introduction of 24/7 trading for cryptocurrency futures and options starting early next year [8] - The partnership with FanDuel aims to enhance retail strategy, potentially reaching 13 million accounts [14][16] - The company is extending its FTSE Russell Index derivatives license through 2037, ensuring continuity and value for clients [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth despite a general pullback in volatility across asset classes [5] - The company remains focused on driving earnings growth by expanding its customer base and innovating products [11] - Management acknowledged the importance of credibility in markets and emphasized the potential for growth in the retail sector without necessarily pursuing acquisitions [17] Other Important Information - CME Group's adjusted effective tax rate was 22.6% for the quarter [9] - The company paid dividends of $455 million in Q3 and approximately $3.5 billion over the first nine months of the year [10] Q&A Session Summary Question: Long-term retail strategy and potential M&A - Management highlighted the evolving strategy in retail, emphasizing distribution efficiencies and the importance of the partnership with FanDuel to access a large customer base [14][16] Question: Growth in event contracts, particularly sports-related - Management clarified that while there is interest in sports event contracts, the decision to list them depends on regulatory approval and the readiness of partners [24][25] Question: Energy market outlook and share shifts - Management noted a slight decrease in energy volumes but highlighted growth in crude and natural gas markets, particularly in Europe and Asia [61] Question: Market data revenue growth and pricing opportunities - Management reported a 14% increase in market data revenue, driven by international demand, and announced a 3.5% price increase for data products effective January 1, 2026 [114]

Financial Data and Key Metrics Changes - CME Group generated revenue of $1.5 billion in Q3 2025, down 3% from Q3 2024, with an average rate per contract of $0.702, resulting in clearing and transaction fees of $1.2 billion [8][9] - Market data revenue reached a record $203 million, up 14% year-over-year, marking the 30th consecutive quarter of revenue growth [8][100] - Adjusted net income was $978 million, or $2.68 per share, slightly above the previous year's strong performance, representing the third highest quarter in the company's history [9][10] Business Line Data and Key Metrics Changes - Average daily volume for the quarter was 25.3 million contracts, the second highest in CME's history for Q3, with quarter-end open interest at 126 million contracts, the highest in five years [4][5] - The crypto complex traded a record 340,000 contracts per day, up over 225% year-over-year, driven by the success of Solana and XRP futures [5] - FX Spot Plus set new volume records every month in Q3, indicating strong demand for innovative trading solutions [6] Market Data and Key Metrics Changes - CME Group maintained a 76% market share in WTI futures, up from 74% in the previous quarter, and held a 91% share in WTI options markets [56] - Natural gas complex grew by 2% in Q3, with NACAS options up 12%, reflecting ongoing demand for U.S. LNG exports [58] Company Strategy and Development Direction - CME Group is focused on innovation and expanding product offerings, including the introduction of 24/7 trading for cryptocurrency futures and options starting early next year [7] - The partnership with FanDuel aims to enhance retail strategy, potentially reaching 13 million accounts and expanding distribution of CME products [12][16] - The company is committed to maintaining strong capital efficiencies and exploring new market opportunities without necessarily pursuing acquisitions [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by customer demand and innovative products, despite a general pullback in volatility across asset classes [4][5] - The outlook for energy markets remains positive, with expectations of growth in crude and natural gas trading as U.S. energy products continue to globalize [58] - Management emphasized the importance of credibility in markets and the potential for future growth in retail and prediction markets [16][36] Other Important Information - CME Group announced the extension of its FTSE Russell Index derivatives license through 2037, ensuring continuity and value for clients [6] - The company is preparing for 24/7 trading in crypto markets by 2026, with ongoing efforts in tokenization of cash and other assets [70][76] Q&A Session Summary Question: Can you talk about your long-term retail strategy? - Management highlighted the importance of the partnership with FanDuel and the potential to reach 13 million accounts, emphasizing a strong position to grow retail business organically without M&A [12][16] Question: Is CME Group considering sports-related event contracts? - Management stated that they are prepared to offer sports event contracts once regulatory approval is secured, emphasizing the need for government clarity on the classification of these contracts [20][22][36] Question: What is the outlook for energy markets? - Management noted that while energy volumes were down in Q3, there is still strong growth potential in crude and natural gas markets, particularly in Europe and Asia [56][58] Question: How are you thinking about capital deployment after the recent sale? - Management indicated that proceeds from the sale were approximately $1.55 billion, with plans to review potential uses of capital, including buybacks and dividends [63][64] Question: Can you elaborate on the hurdles for 24/7 trading? - Management discussed the need for tokenization and operational readiness for 24/7 trading, starting with crypto markets, while noting that demand from other asset classes is still being assessed [70][76]

Financial Data and Key Metrics Changes - CME Group generated revenue of $1,500,000,000, down 3% from the strong third quarter in 2024 [11] - Adjusted net income and adjusted diluted earnings per share were $978,000,000 and $2.68 per share, slightly above the previous year's third quarter [12] - Average daily volume was 25,300,000 contracts, the second highest in CME's history for a third quarter [5][6] Business Line Data and Key Metrics Changes - The crypto complex traded a record 340,000 contracts per day, up over 225% year-over-year [6] - Market data revenue reached over $200,000,000 for the first time, up 14% [11][12] - New products with record volume included credit futures, one ounce gold futures, and agricultural weekly options [7] Market Data and Key Metrics Changes - Open interest at quarter-end was 126,000,000 contracts, the highest for September in the last five years [6] - WTI futures market share increased to 76% from 74% in the previous quarter [70] - Natural gas complex grew 2%, led by nat gas options up 12% [71] Company Strategy and Development Direction - CME Group is focused on innovation and expanding product offerings, including 24/7 trading of cryptocurrency futures and options [8][9] - A partnership with FanDuel aims to develop and distribute event-based contracts, enhancing retail strategy [9][20] - The company is extending its cross-margin agreement with DTCC to increase margin savings for clients [8] Management Comments on Operating Environment and Future Outlook - Management noted strong customer demand for products, with growing open interest and records in large open interest holders [13] - The outlook for energy markets remains positive, with continued growth in crude and natural gas [73] - Management emphasized the importance of credibility in markets and the potential for growth in retail offerings without necessarily pursuing acquisitions [20] Other Important Information - Capital expenditures for the third quarter were approximately $19,000,000, with cash at the end of the quarter around $2,600,000,000 [12] - The company paid dividends of $455,000,000 in the third quarter and approximately $3,500,000,000 over the first nine months of the year [12] - The average cash balance in the third quarter was $135,000,000, with a 30% cash minimum affecting client allocation decisions [105][106] Q&A Session Summary Question: Can you talk about your long-term retail strategy? - Management highlighted the importance of the partnership with FanDuel, which provides access to 13,000,000 potential accounts, and emphasized the credibility of CME in the retail market [16][20] Question: Is CME considering offering sports event contracts? - Management stated that the decision to list sports events depends on regulatory approval and expressed readiness to offer such contracts if permitted [30][48] Question: What is the outlook for energy markets? - Management noted that while energy volumes were down in the quarter, there is still strong growth potential in crude and natural gas markets, particularly in Europe and Asia [66][73] Question: What are the proceeds from the Ultra sale and capital deployment plans? - Proceeds from the sale were about $1,500,000,000, with management planning to present recommendations for capital use to the board soon [80][82] Question: Can you elaborate on the 24/7 trading initiative? - Management indicated that 24/7 trading for crypto is set for 2026, with ongoing discussions about potential expansion to other asset classes based on client demand [96][100]

Core Viewpoint - CME Group reported quarterly earnings of $2.68 per share, exceeding the Zacks Consensus Estimate of $2.63 per share, with earnings remaining unchanged from the previous year [1][2] Financial Performance - The earnings surprise for the quarter was +1.90%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] - CME posted revenues of $1.54 billion for the quarter ended September 2025, which was 0.81% above the Zacks Consensus Estimate, although it represents a decline from year-ago revenues of $1.58 billion [3] - The company has exceeded consensus revenue estimates three times in the last four quarters [3] Stock Performance - CME shares have increased approximately 15.7% since the beginning of the year, outperforming the S&P 500's gain of 14.5% [4] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates for the upcoming quarter at $2.64 on revenues of $1.6 billion, and for the current fiscal year at $11.05 on revenues of $6.47 billion [8] - The estimate revisions trend for CME was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Securities and Exchanges industry, to which CME belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting potential challenges ahead [9]