Financials basket

The following basket contains only two companies from the financial sector. CME is one of the largest stock exchanges in the world, and Robinhood is one of the largest retail financial services for trading.
Both companies should benefit from the increasing FED rate and volatility caused by global political and economic events that influence financial markets. Market expects that FED will keep the rate at the current level at the nearest meeting though will increase by 25 bps in December. During the next year market expects two rate increase in March and June. Given this outlook both companies might demonstrate positive financial results.
CME Group Inc. [Internal score 74/100] is the world’s largest and most diversified derivatives exchange operator, covering both financial and commodity markets. CME encompasses the CME, CBOT, NYMEX, and COMEX trading venues, serving as a vital global infrastructure for risk hedging and speculative trading. Its flagship segment (comprising futures and options on Treasuries, SOFR, and Fed Funds) generates the highest trading volume.
According to the financial report for the 2nd quarter of 2026 revenue increased 0.8% y-o-y and amounted to $1.7 bln. EBITDA margin for the previous quarter was around 71% level. EBITDA margin level is stable and for the past four years stands around 70%. Net income exceeds $1.04 bln vs $1.01 bln for the same period in 2025. Revenue is expected to exceed 1.7 bln in the next quarter, giving 12% y-o-y growth.
Robinhood Markets, Inc. [Internal score 50/100] is an American fintech company that revolutionized the brokerage industry by introducing zero-commission trading. Key revenue sources are Options and Crypto Trading, Net Interest Revenues and subscription services. In recent years company launched futures, index options, earnings contracts trading and 24/5 stock trading. Robinhood is #1 Platform for Active Retail Traders. It processes over 320+ million options contracts per month.
Revenue for the 2nd quarter of 2026 increased by 32% y-o-y to $1.3 bln, while operating profit soared by 36% to $468 mln. For the next two quarters revenue is expected to exceed $1.4 bln and $1.5 bln accordingly. Operating income margin for the last quarter is around 40%. Net Income for the past quarter exceeded $477 mln vs $386 mln for the same quarter of 2025. Amount of assets is above $56.5 bln (+60% y-o-y).
The next two weeks offer a good entry point, with strong trading activity already visible and several catalysts still ahead. CME reports on 21 October after record Q3 volumes, while Robinhood reports on 27 October, with results expected to show continued demand for options and prediction markets. The Fed decision on 28 October and the US midterms on 3 November should keep trading and hedging demand high, while Robinhood’s recently announced products offer another source of growth. We think the upcoming results could confirm that this activity is translating into higher earnings and give both shares room to rise.
