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        <title>Cmc Markets Plc (LSE:CMCX) Share Price, History, &amp; News | The Motley Fool UK</title>
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	<title>Cmc Markets Plc (LSE:CMCX) Share Price, History, &amp; News | The Motley Fool UK</title>
	<link>https://www.fool.co.uk/tickers/lse-cmcx/</link>
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                                <title>As the FTSE indexes sink, these unique dividend shares are making investors money</title>
                <link>https://www.fool.co.uk/2026/03/21/as-the-ftse-indexes-sink-these-unique-dividend-shares-are-making-investors-money/</link>
                                <pubDate>Sat, 21 Mar 2026 09:35:00 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1664095</guid>
                                    <description><![CDATA[<p>These two dividend shares are in positive territory for the month and outperforming the major FTSE indexes by a significant margin.</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/21/as-the-ftse-indexes-sink-these-unique-dividend-shares-are-making-investors-money/">As the FTSE indexes sink, these unique dividend shares are making investors money</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>While the <strong>FTSE 100</strong> and <strong>FTSE 250</strong> indexes have slumped recently, not all shares on the <strong>London Stock Exchange</strong> have fallen. Believe it or not, there are some shares that have risen as markets have become turbulent, protecting investors from the volatility.</p>



<p>Interested in learning more? Here’s a look at two of these stocks.</p>



<h2 class="wp-block-heading" id="h-rising-while-the-market-is-falling">Rising while the market is falling</h2>



<p>One group of companies that often does well when market volatility picks up is financial trading businesses. The reason they tend to outperform is that volatility creates trading opportunities – when markets are swinging around wildly, customers want to place more trades.</p>



<p>Now, one of my favourite UK stocks in this space is <strong>IG Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-igg/">LSE: IGG</a>). I’ve highlighted this name a few times recently as an undervalued growth (and income) play.</p>



<p>It’s having a great run at the moment. This week, it actually hit new all-time highs.</p>



<p>Relative to the FTSE 100 (which it’s set to join at the end of this month), it’s outperforming by a wide margin. Over a month, it’s up about 6% versus a 6% fall for the index.</p>


<div class="tmf-chart-singleseries" data-title="IG Group Holdings Price" data-ticker="LSE:IGG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Even near all-time highs, I still see a lot of appeal in the stock. Because it still looks relatively cheap (the forward-looking <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> ratio is only 12) and offers an attractive <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/dividend-yield/">dividend yield</a> (3.1%).</p>



<p>Meanwhile, the company is performing well and just announced a strategic review to ensure it captures the full long-term opportunity ahead. “<em>We operate in large and fast-growing markets being reshaped by structural drivers, and now is the time to raise our ambitions,</em>” said the firm in an update.</p>



<p>It’s worth pointing out that IG operates in a competitive market. Players it’s up against include the likes of <strong>Robinhood</strong> and Trading 212.</p>



<p>It seems to be holding its own amid the growing level of competition, however. So, I think it’s worth considering for a portfolio.</p>



<h2 class="wp-block-heading" id="h-near-52-week-highs-despite-market-weakness">Near 52-week highs despite market weakness</h2>



<p>Another company in this industry that could be worth a look though is <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cmcx/">LSE: CMCX</a>). It offers similar services to IG but is significantly smaller (it’s in the FTSE 250 index).</p>



<p>It’s not at all-time highs at the moment. But it is near 52-week highs, meaning that pretty much everyone who bought shares in the last year is now in positive territory.</p>


<div class="tmf-chart-singleseries" data-title="Cmc Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>I see a lot of appeal in this name too. Like IG, it&#8217;s cheap (the P/E ratio is 11.5) and sports an attractive yield (4.4%).</p>



<p>It also has momentum at the moment. Recently, it has done some major white label deals that could massively boost growth (one of these was with Australian banking giant <strong>Westpac</strong>).</p>



<p>Again, competition is a risk. These days, traders and investors have a lot of choice when it comes to platforms.</p>



<p>With a below-market-average valuation and an above-average yield, however, I like the risk/reward proposition. In my view, this stock is worth a closer look right now.</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/21/as-the-ftse-indexes-sink-these-unique-dividend-shares-are-making-investors-money/">As the FTSE indexes sink, these unique dividend shares are making investors money</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>£1,000 buys 305 shares of this red hot UK financial stock that’s smashing Lloyds</title>
                <link>https://www.fool.co.uk/2026/03/03/1000-buys-305-shares-of-this-red-hot-uk-financial-stock-thats-smashing-lloyds/</link>
                                <pubDate>Tue, 03 Mar 2026 11:45:24 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1656427</guid>
                                    <description><![CDATA[<p>Investors in Lloyds will be chuffed with the performance of the shares over the last year. However, they could have generated much higher returns with this stock.</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/03/1000-buys-305-shares-of-this-red-hot-uk-financial-stock-thats-smashing-lloyds/">£1,000 buys 305 shares of this red hot UK financial stock that’s smashing Lloyds</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p><strong>Lloyds</strong> shares have performed well recently. Over the last year, they’ve risen about 36%.</p>



<p>Yet that return looks rather pedestrian relative to the gains generated by a financial stock in the <strong>FTSE 250</strong> index. With this stock, investors could have picked up another 20 percentage points or so.</p>



<h2 class="wp-block-heading" id="h-a-hot-stock-in-the-ftse-250">A hot stock in the FTSE 250</h2>



<p>The one I’m talking about is <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cmcx/">LSE: CMCX</a>). It’s a leading online trading and investment business.</p>



<p>Founded in 1989, it operates in 12 countries today. Services offered include stock and ETF trading (commission-free in many cases), FX trading, spread betting and contracts for difference (CFDs) trading, and white label solutions for other companies.</p>



<p>At present, CMC shares trade for £3.27. That means £1,000 buys around 305 shares (ignoring trading commissions).</p>



<p>The stock – which is up almost 60% over the last year – may not be at these levels for much longer though. I reckon it may only be a matter of time until investors spot the opportunity here.</p>


<div class="tmf-chart-singleseries" data-title="Cmc Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<h2 class="wp-block-heading" id="h-the-investment-opportunity">The investment opportunity</h2>



<p>Looking at the set-up, there’s a lot to like about CMC shares, in my view. For a start, the company is well placed to benefit from volatility in the stock market (which is picking up as a result of several factors).</p>



<p>When markets become volatile, investors and traders tend to place more trades. This translates to more revenue for the company (which takes a slice of every transaction through a spread between buy and sell prices).</p>



<p>Second, the company has recently done some white label deals that could massively boost growth. One such deal was with Aussie bank <strong>Westpac</strong> (one of the big four banks in Australia).</p>



<p>This is expected to increase the company’s user base significantly. And it should cement the company as the country’s second largest stockbroker.</p>



<p>I’ll point out that I’ve used the company’s investment platform in Australia and it’s really good. With commission-free trading on offer for Australian share trades under $1,000, and zero fees for US stock trades, it’s very cost effective.</p>



<p>Third, the valuation looks attractive. Currently, the forward-looking <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> (P/E) ratio is only 11.6.</p>



<p>That multiple looks too low to me. To my mind, there’s definitely scope for a valuation re-rating at some stage.</p>



<p>Finally, the company is hiking its dividend. In November, it lifted its H1 payout by a whopping 77% to 5.5p per share.</p>



<p>For the current financial year, analysts expect a payout of 14.7p per share. That puts the <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/dividend-yield/">dividend yield</a> at about 4.5%.</p>



<h2 class="wp-block-heading" id="h-worth-a-look">Worth a look?</h2>



<p>Now, of course, there are risks here. One is competition.</p>



<p>Today, this area of financial services is intensively competitive. One rival to keep an eye on is <strong>Robinhood Markets</strong> (I just bought shares in this firm), which is having a huge amount of success at the moment.</p>



<p>Another risk is regulation. In the future, regulators could decide to clamp down on higher-risk products like CFDs.</p>



<p>Overall though, I see a lot of potential. I think this FTSE 250 stock warrants further research.</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/03/1000-buys-305-shares-of-this-red-hot-uk-financial-stock-thats-smashing-lloyds/">£1,000 buys 305 shares of this red hot UK financial stock that’s smashing Lloyds</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 stocks to consider buying that outperformed during the last stock market crash</title>
                <link>https://www.fool.co.uk/2026/02/25/2-stocks-to-consider-buying-that-outperformed-during-the-last-stock-market-crash/</link>
                                <pubDate>Wed, 25 Feb 2026 09:21:07 +0000</pubDate>
                <dc:creator><![CDATA[Jon Smith]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1653316</guid>
                                    <description><![CDATA[<p>Jon Smith reviews the performance of two stocks during the 2020 market rout and explains why they both could be good ones to consider buying now.</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/25/2-stocks-to-consider-buying-that-outperformed-during-the-last-stock-market-crash/">2 stocks to consider buying that outperformed during the last stock market crash</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>In early 2020, the pandemic outbreak caused the <strong>FTSE 100</strong> to crash. Even though it eventually recovered, investors who had some defensive picks in their portfolios certainly had a smoother ride than others did. Given some concern around whether the UK market is due for another crash, here are two stocks to think about buying that did well last time the market was under pressure.</p>



<h2 class="wp-block-heading" id="h-running-for-safety">Running for safety</h2>



<p>During Q1 2020, the FTSE 100 fell by 25.4%. In comparison, <strong>Fresnillo </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-fres/">LSE:FRES</a>) rose by 3.5%. The precious metals miner saw strong demand as gold and silver prices surged. Investors sought safe-haven assets during periods of market stress, with precious metals having a strong historical track record of outperforming.</p>



<p>The intriguing part of buying Fresniollo as a defensive pick is that whatever the cause of the next crash might be, it&#8217;ll likely trigger a similar move to buy precious metals.</p>



<p>In some cases, mining stocks can outperform the metals’ price. This is due to the operational leverage that Fresnillo (and <a href="https://www.fool.co.uk/investing-basics/market-sectors/investing-in-mining-stocks-in-the-uk/" target="_blank" rel="noreferrer noopener">related companies</a>) have. What I mean by this is that if the price of silver jumps 10% tomorrow, Fresnillo can immediately benefit from a higher selling price. Yet the cost of extracting the metal hasn&#8217;t changed from the previous day. So it can increase output, enjoy the higher revenue, and also enjoy higher profits in the short term due to fixed costs of production.</p>



<p>However, Fresnillo is a <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/" target="_blank" rel="noreferrer noopener">volatile stock</a>. As the share price is correlated to commodity prices, it can experience sharp swings both higher and lower. It&#8217;s up 412% in the past year, but with a price-to-earnings ratio of 147, some might understandably see it as overvalued at the moment.</p>


<div class="tmf-chart-multipleseries" data-title="Fresnillo Plc + Cmc Markets Plc Price" data-tickers="LSE:FRES LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-benefitting-from-volatility">Benefitting from volatility </h2>



<p>Another stock to consider is <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cmcx/">LSE:CMCX</a>). During Q1 2020, it rallied 22%. This was primarily due to the high market volatility, which drove a surge in retail trading activity. Given that CMC operates a retail trading platform, it was able to capture and benefit from these higher volumes. Profitability increased as it makes a small commission on each trade, so the more trades that occur, the more money it makes!</p>



<p>Again, I think this could do well regardless of the cause of the next crash. Irrespective of the catalyst, we&#8217;ll likely see higher volatility in both stocks and other asset classes. CMC has a broad product range that can be traded, suggesting it should outperform as client activity increases.</p>



<p>Further, it&#8217;s now a larger company than back in 2020. It&#8217;s expanded different partnership agreements, and in the latest half-year report noted that of the new account openings, <em>&#8220;around 70% of these accounts are from European countries where we have no physical presence.&#8221;</em></p>



<p>One risk is higher competition. Other platforms catering to the same crowd have popped up in recent years, putting pressure on CMC to maintain market share.</p>



<p>Even with the concerns, I think both stocks are worthy of consideration by investors right now.</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/25/2-stocks-to-consider-buying-that-outperformed-during-the-last-stock-market-crash/">2 stocks to consider buying that outperformed during the last stock market crash</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 fallen FTSE 250 shares to consider buying before they bounce back</title>
                <link>https://www.fool.co.uk/2025/06/08/2-fallen-ftse-250-shares-to-consider-buying-before-they-bounce-back/</link>
                                <pubDate>Sun, 08 Jun 2025 07:30:00 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1528948</guid>
                                    <description><![CDATA[<p>These FTSE 250 stocks have just taken hits from results that didn't meet expectations. I think the market might have overreacted.</p>
<p>The post <a href="https://www.fool.co.uk/2025/06/08/2-fallen-ftse-250-shares-to-consider-buying-before-they-bounce-back/">2 fallen FTSE 250 shares to consider buying before they bounce back</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p><strong>Wizz Air Holdings</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-wizz/">LSE: WIZZ</a>) dipped sharply on Thursday (5 June) after the <strong>FTSE 250</strong> airline posted a 62% full-year operating profit fall. The shares have lost half their value in the past 12 months, and two-thirds over five years.</p>



<p>But is Wizz in the bargain basement of airline sector stocks now? It just might be.</p>


<div class="tmf-chart-singleseries" data-title="Wizz Air Plc Price" data-ticker="LSE:WIZZ" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-one-off-factor">One-off factor</h2>



<p>The profit hit came mainly from issues over new Pratt &amp; Whitney engines, which grounded a number of planes. And the company suspended its 2026 guidance. So there&#8217;s clearly a fair bit of risk here, in a sector that&#8217;s already inherently risky.</p>



<p>But the Wizz Air share price weakness has worked wonders for valuation. Forecasts put the 2026 <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings</a> (P/E) ratio down at just 5.4, and dropping even lower to 4.2 by 2027.</p>



<p>I see no reason to think analysts will need to downgrade forecasts in any real way. Current bookings are good. And the company expects significant rises this year in revenue and capacity, coupled with lower costs.</p>



<h2 class="wp-block-heading" id="h-cheapest-of-the-bunch">Cheapest of the bunch?</h2>



<p>That P/E is lower than at <strong>easyJet</strong>&#8216;s 6.8 predicted for 2027. And it&#8217;s even a bit below the 5.2 at <strong>International Consolidated Airlines</strong> whose longer-haul operations have been suffering. And Wizz Air has much stronger earnings growth forecast than either of those.</p>



<p>I&#8217;ll give it a miss myself because the sector just don&#8217;t fit my strategy. But I reckon those who <a href="https://www.fool.co.uk/investing-basics/market-sectors/investing-in-airline-stocks-in-the-uk/" target="_blank" rel="noreferrer noopener">invest in airlines</a> could do well to consider buying Wizz while it&#8217;s down.</p>



<h2 class="wp-block-heading" id="h-investing-platform">Investing platform</h2>



<p>The <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cmcx/">LSE: CMCX</a>) share price dipped the same day, on full-year results. That&#8217;s even though the annual dividend rose 37%. The company, which provides online trading and investing services, saw underlying <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/what-is-ebitda/" target="_blank" rel="noreferrer noopener">EBITDA</a> grow 12% with profit before tax up 33%.</p>



<p>But we did see revenue excluding interest income fall 2.3%. The 2024 share price recovery seems to have gone off the boil again.</p>


<div class="tmf-chart-singleseries" data-title="Cmc Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-too-low">Too low?</h2>



<p>Again, this is one where I think the weak share price performance could be out of line with forecasts and the valuation they imply.</p>



<p>To be fair, in the latest update the company did speak of weakening interest income and a &#8220;<em>softer near-term outlook</em>&#8220;. And maybe we&#8217;ll see forecasts for the next two years scaled back a bit.</p>



<p>But analysts currently see earnings per share rising 12% over the next two years, providing two-times cover for the predicted progressive dividends. Even if that might now be a bit optimistic, I still see enough safety margin in P/E multiples of only a bit over nine to cover it.</p>



<p>And this is a company with net cash on the books, of £248m at 31 March, and forecast to improve further by 2027.</p>



<h2 class="wp-block-heading" id="h-crypto-risk">Crypto risk?</h2>



<p>CMC&#8217;s cryptocurrency trading service is popular and can be profitable. But might it lose some attraction if today&#8217;s excitement should cool? And as economies settle, interest rates fall, and more investors head back to long-term stock markets, short-term trading could also slow.</p>



<p>But on today&#8217;s valuation, I really think this could be a good time to consider getting in.</p>
<p>The post <a href="https://www.fool.co.uk/2025/06/08/2-fallen-ftse-250-shares-to-consider-buying-before-they-bounce-back/">2 fallen FTSE 250 shares to consider buying before they bounce back</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>After rocketing 232% in a year can this red-hot FTSE 250 stock keep going gangbusters?</title>
                <link>https://www.fool.co.uk/2024/11/14/after-rocketing-232-in-a-year-can-this-red-hot-ftse-250-stock-keep-going-gangbusters/</link>
                                <pubDate>Thu, 14 Nov 2024 10:14:15 +0000</pubDate>
                <dc:creator><![CDATA[Harvey Jones]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1417626</guid>
                                    <description><![CDATA[<p>Harvey Jones says this FTSE 250 stock's on fire after smashing the index over the last year. It's cheaper than he expected, but could he get his fingers burned?</p>
<p>The post <a href="https://www.fool.co.uk/2024/11/14/after-rocketing-232-in-a-year-can-this-red-hot-ftse-250-stock-keep-going-gangbusters/">After rocketing 232% in a year can this red-hot FTSE 250 stock keep going gangbusters?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p><strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cmcx/">LSE: CMCX</a>) is easily the best performing <strong>FTSE 250</strong> stock of the last 12 months, climbing an astonishing 231.57% in that time.</p>


<div class="tmf-chart-singleseries" data-title="Cmc Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>That&#8217;s the kind of performance we might expect from a US tech giant such as <strong>Nvidia</strong>, rather than a UK financial trading platform at a sketchy time for the FTSE.</p>



<p>To put that into perspective, the FTSE 250’s second best performer, <strong>TrustPilot Group</strong>, is up ‘just’ 142.72% over the last year, the laggard.</p>



<h2 class="wp-block-heading" id="h-cmc-markets-moves-like-nvidia">CMC Markets moves like Nvidia</h2>



<p>Sadly, I don&#8217;t hold any of these three fliers, and I&#8217;m poorer as a result. But there&#8217;s an obvious danger in chasing past performance. So what are the chances of CMC jumping another 232% in the next 12 months? I&#8217;d say it&#8217;s limited by its very success.</p>



<p>With a market-cap of £875m, CMC does have room to grow. It doesn&#8217;t look too expensive despite its stellar success, with a price-to-earnings ratio of 18.98. That&#8217;s higher than the average FTSE 250 P/E of 11.1, but not out of sight.</p>



<p>A price-to-revenue ratio of 2.7% makes me wary. It means I&#8217;d have to pay £2.70 for each £1 of sales CMC makes. A price-to-book value of 2.2 is also on the high side.</p>



<p>Although a retail site, CMC is targeted at more sophisticated traders, specialising in contracts for difference (CFDs) and spread betting. It isn&#8217;t just a UK-focused operation, it has operations in Europe, Australia, New Zealand, Singapore and Canada.</p>



<p>A company like this thrives on <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/">stock market volatility</a>, and with Donald Trump heading back to the White House, we&#8217;re likely to see a lot more of that. Yet the CMC share price hasn&#8217;t moved since the US presidential landslide, as many potential Trump trades have. That&#8217;s odd given that CMC offers crypto trading and Bitcoin&#8217;s going bananas.</p>



<p>It may have been knocked by domestic post-Budget worries. Or concerns over the impact of Trump tariffs on the non-US markets that CMC operates in.</p>



<p>CMC posted a blistering first-half update on 9 October, with net operating income up 45% to £180m as institutional business grew while operating costs fell.</p>



<h2 class="wp-block-heading" id="h-the-share-price-may-have-plateaued-for-now">The share price may have plateaued for now</h2>



<p>CMC now anticipates that a £2m loss in the first half of the 2024 financial year will turn into a £51m profit before tax in H1 2025.</p>



<p>Trading platforms rely on clients making enough money to remain interested and active. It has an inevitable turnover as wannabe day traders try out spread betting and – like I did – discover it&#8217;s a great way of losing real money fast.</p>



<p>I&#8217;m therefore glad to see CMC targeting for both the institutional and business-to-business segment. It&#8217;s also looking to launch a cash ISA. That&#8217;s an odd decision but could offer a more stable revenue stream, albeit in a competitive market.</p>



<p>I’ll have a better idea of its staying power when CMC releases interim results on 21 November.</p>



<p>The four analysts offering one-year share targets have set a median price of 276.5p. If correct, that&#8217;s a drop of 11.74% from here.</p>



<p>That confirms my suspicions that I&#8217;m coming to this stock too late. Despite CMC&#8217;s relatively modest valuation, there&#8217;s a risk of a pullback. This is one for me to buy in a <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/is-the-market-going-to-crash/">market crash</a>, should we get one.</p>
<p>The post <a href="https://www.fool.co.uk/2024/11/14/after-rocketing-232-in-a-year-can-this-red-hot-ftse-250-stock-keep-going-gangbusters/">After rocketing 232% in a year can this red-hot FTSE 250 stock keep going gangbusters?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>1 FTSE 250 stock I&#8217;d love to snap up in the next stock market crash</title>
                <link>https://www.fool.co.uk/2024/11/13/1-ftse-250-stock-id-love-to-snap-up-in-the-next-stock-market-crash/</link>
                                <pubDate>Wed, 13 Nov 2024 11:04:58 +0000</pubDate>
                <dc:creator><![CDATA[Jon Smith]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1416424</guid>
                                    <description><![CDATA[<p>Jon Smith reveals a FTSE 250 share on his watchlist that he thinks is a little overvalued right now but would be on his radar if the market fell.</p>
<p>The post <a href="https://www.fool.co.uk/2024/11/13/1-ftse-250-stock-id-love-to-snap-up-in-the-next-stock-market-crash/">1 FTSE 250 stock I&#8217;d love to snap up in the next stock market crash</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p></p>



<p>Over the past week, stock markets around the world have jumped as the spill over from the US election result is felt. The <strong>FTSE 250</strong> index is up 8% so far this year, with some individual constituents up significantly more. Yet there&#8217;s one stock that I feel I&#8217;ve missed the boat on which I have on my watchlist if we get a significant correction.</p>



<h2 class="wp-block-heading" id="h-incredible-gains">Incredible gains</h2>



<p>I&#8217;m referring to <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cmcx/">LSE:CMCX</a>). The financial trading and investing platform has risen by a whopping 232% over the past year. The growth has been at a frantic pace, but the stock is currently too high for me to justify buying. Even from a valuation perspective, it looks stretched. For example, the <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings</a> ratio stands at 19.34, almost double the fair value benchmark of 10 that I use.</p>



<p>Yet even though I&#8217;m not buying right now, any kind of sharp correction would see me step in. One of the main reasons why I like the stock is due to the way it makes money. CMC generates fees from trading activities. Put another way, the more that users buy and sell different assets, the more money it makes. So ideally, CMC wants to see volatile markets, enabling more opportunities for clients to trade and invest.</p>



<p>Over the coming year, I think we&#8217;ll see such volatile markets. This relates to the start of the Trump presidency, a likely election in Q1 in Germany, persistent economic problems here in the UK and much more. I haven&#8217;t even started to talk about the surge in interest being seen in crypto (which CMC offers)!</p>



<p><em>The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of investment advice. Bitcoin and other cryptocurrencies are highly speculative and volatile assets, which carry several risks, including the total loss of any monies invested. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.</em></p>


<div class="tmf-chart-singleseries" data-title="Cmc Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-a-potential-market-wobble">A potential market wobble</h2>



<p>Some of this volatility might result in a stock market crash, which serves my purpose well in hopefully being able to buy the stock cheaper than current. I think that we could see a crash based on a couple of catalysts.</p>



<p>One is the potential for escalating trade wars from the US and China. This could spook investors and cause stocks to tumble lower.</p>



<p>Alternatively, it could be triggered by continued escalation in the Middle East. Given the impact this would likely have on oil, gold and other assets, stocks related to these commodities could be in for a rough ride.</p>



<h2 class="wp-block-heading" id="h-weighing-it-up">Weighing it up</h2>



<p>There are some risks to my view. One is that we might never see the CMC share price tumble. So if I&#8217;m correct and the business does well and generates higher profits from client activity, I could miss the boat completely.</p>



<p>Another risk relates to the business. In a recent update, it spoke about how it&#8217;s planning to offer more products, including Cash ISAs in the UK. I&#8217;m not sure that this is a good idea, as there are plenty of <a href="https://www.fool.co.uk/investing-basics/isas-and-investment-funds/stocks-and-shares-isas/" target="_blank" rel="noreferrer noopener">existing providers of ISAs</a>. I don&#8217;t think CMC has a unique selling point in this area. As it continues to grow, it needs to select where it wants to focus on wisely.</p>



<p>Even with those risks, it&#8217;s definitely a stock I&#8217;m keeping on my watchlist.</p>
<p>The post <a href="https://www.fool.co.uk/2024/11/13/1-ftse-250-stock-id-love-to-snap-up-in-the-next-stock-market-crash/">1 FTSE 250 stock I&#8217;d love to snap up in the next stock market crash</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 high-yield FTSE 250 shares I&#8217;d buy today &#8212; and 1 that I&#8217;d avoid</title>
                <link>https://www.fool.co.uk/2024/11/05/2-high-yield-ftse-250-shares-id-buy-today-and-1-that-id-avoid/</link>
                                <pubDate>Tue, 05 Nov 2024 12:24:56 +0000</pubDate>
                <dc:creator><![CDATA[Mark Hartley]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1413524</guid>
                                    <description><![CDATA[<p>UK markets have felt some volatility after last week’s Budget and the FTSE 250 was no stranger to it. Our writer considers his options.</p>
<p>The post <a href="https://www.fool.co.uk/2024/11/05/2-high-yield-ftse-250-shares-id-buy-today-and-1-that-id-avoid/">2 high-yield FTSE 250 shares I&#8217;d buy today &#8212; and 1 that I&#8217;d avoid</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>Last week&#8217;s Budget shook up UK markets and smaller-cap companies like those on the <strong>FTSE 250</strong> are particularly sensitive to such changes.</p>



<p>With the largest tax increases in three decades, many companies felt the effects. But some stand to gain better than others.</p>



<p>Here’s one FTSE 250 stock I’m avoiding and two that I think could benefit from the new budget.</p>



<h2 class="wp-block-heading" id="h-close-brothers-group">Close Brothers Group</h2>


<div class="tmf-chart-singleseries" data-title="Close Brothers Group Plc Price" data-ticker="LSE:CBG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p><strong>Close Brothers Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cbg/">LSE: CBG</a>) is in hot water due to a probe by the Financial Conduct Authority (FCA) regarding motor financing. The FCA is investigating historical claims related to commissions that car dealerships may have received for setting higher interest rates on vehicle loans.</p>



<p>The bank is reportedly putting aside £400m to cover costs related to the probe.</p>



<p>Subsequently, the bank has suspended its dividend for the current financial year and warned that it may continue to withhold dividends until at least 2025. It&#8217;s also agreed to sell its wealth management unit to Oaktree for £200m.</p>



<p>If the bank successfully navigates this period and clears its regulatory challenges, there could be a decent recovery &#8212; especially if investor confidence rebounds and <a href="https://www.fool.co.uk/investing-basics/how-shares-are-taxed-2/how-dividends-are-taxed/">dividends</a> resume. For investors looking to grab undervalued shares, that could be an opportunity.</p>



<p>For now, however, I&#8217;ll be avoiding the shares.</p>



<h2 class="wp-block-heading" id="h-cmc-markets">CMC Markets</h2>


<div class="tmf-chart-singleseries" data-title="Cmc Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>Online trading company <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cmcx/">LSE: CMCX</a>) is popular for its contracts for difference (CFD) trading and financial spread betting.&nbsp;</p>



<p>It&#8217;s up 214% in the past year but may have more room to grow – it’s still 41% down from its high of 536p in April 2021. And with a <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> (P/E) ratio of only 18.6, it looks like good value at this price.&nbsp;</p>



<p>Recently, it&#8217;s been expanding beyond traditional CFD trading to other areas such as institutional trading services and technology partnerships. This diversification reduces its dependence on retail CFD trading and helps to create additional revenue streams.</p>



<p>That said, it&#8217;s exposed to the risk of changing regulations, especially in the retail trading industry. One recent example is restrictions on leverage within the EU. It also faces stiff competition from rivals like <strong>IG Group</strong> and <strong>Plus500</strong>.</p>



<p>As the popularity of retail trading grows, I think CMC is well-positioned to benefit. I don&#8217;t want to miss out so I&#8217;m buying the shares as soon as possible!</p>



<h2 class="wp-block-heading" id="h-kainos">Kainos</h2>


<div class="tmf-chart-singleseries" data-title="Kainos Group Plc Price" data-ticker="LSE:KNOS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p><strong>Kainos Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-knos/">LSE: KNOS</a>) is a digital services company specializing in IT services, software, and cloud solutions for the public sector, healthcare, and commercial clients. It&#8217;s benefited from increasing demand for digital transformation, particularly in the public and healthcare sectors.</p>



<p>On 31 October, the shares fell 14% after it released a profit warning. The next day, both <strong>Deutsche Bank </strong>and Berenberg put in buy ratings for the stock, reflecting a positive long-term outlook. But with the price down 36% this year, why do they think it will recover?</p>



<p>Kainos has partnerships with major tech companies like <strong>Microsoft </strong>and <strong>Amazon </strong>for cloud services. However, its key relationship is with <strong>Workday</strong>, a business management platform focused on finance and HR. This partnership has provided a steady stream of revenue and is a unique advantage, as Workday is widely adopted among large organizations and is expected to grow as more companies seek integrated cloud-based solutions.</p>



<p>With a solid business and broad market presence, I expect a strong recovery. This is another stock I plan to buy imminently.</p>
<p>The post <a href="https://www.fool.co.uk/2024/11/05/2-high-yield-ftse-250-shares-id-buy-today-and-1-that-id-avoid/">2 high-yield FTSE 250 shares I&#8217;d buy today &#8212; and 1 that I&#8217;d avoid</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>These under-the-radar FTSE 250 stocks haven&#8217;t just beaten the market. They&#8217;ve thrashed it!</title>
                <link>https://www.fool.co.uk/2024/09/25/these-under-the-radar-ftse-250-stocks-havent-just-beaten-the-market-theyve-smashed-it/</link>
                                <pubDate>Wed, 25 Sep 2024 15:15:00 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1389479</guid>
                                    <description><![CDATA[<p>If you think picking stocks never pays, our writer has news for you. Paul Summers highlights two FTSE 250 shares that have made a mockery of the index return. </p>
<p>The post <a href="https://www.fool.co.uk/2024/09/25/these-under-the-radar-ftse-250-stocks-havent-just-beaten-the-market-theyve-smashed-it/">These under-the-radar FTSE 250 stocks haven&#8217;t just beaten the market. They&#8217;ve thrashed it!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>While the UK economy is far from firing on all cylinders, the home-focused <strong>FTSE 250</strong> index has climbed just under 7% in value since January (and 13% in the last 12 months).</p>



<p>However, this is nothing compared to the performance of some of its constituents.</p>



<h2 class="wp-block-heading" id="h-magical-stock">Magical stock</h2>



<p><em>Harry Potter</em> has been a literary phenomenon. Even so, I suspect many people won&#8217;t be aware that the company getting the books into readers&#8217; hands is listed on our stock market. That&#8217;s <strong>Bloomsbury Publishing</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-bmy/">LSE: BMY</a>) and it&#8217;s been a superb investment for the last few years.</p>



<p>Since September 2019, the shares price is up a spell-binding 186%. But just buying the stock in January would still have delivered a 42% gain. </p>



<p>Oh, and there have been <a href="https://www.fool.co.uk/investing-basics/how-shares-are-taxed-2/how-dividends-are-taxed/">dividends</a> on top of this!</p>



<div class="tmf-chart-singleseries" data-title="Bloomsbury Publishing Plc Price" data-ticker="LSE:BMY" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<h2 class="wp-block-heading" id="h-lockdown-star">Lockdown star</h2>



<p>Bloomsbury&#8217;s purple patch really kicked off during the pandemic. Sent behind our doors, many of us fell back into the habit of reading for leisure and earnings boomed. </p>



<p>In contrast to other activities, this trend has endured since the bug was sent packing. Even a cost-of-living crisis doesn&#8217;t appear to have impacted momentum. In fact, the mid-cap has been busy <em>upgrading</em> guidance.</p>



<p>The big question is how much of this is now priced in.</p>



<h2 class="wp-block-heading" id="h-more-to-come">More to come?</h2>



<p>As I type, Bloomsbury stock changes hands for 20 times FY25 earnings. That&#8217;s more than the average across UK stocks.</p>



<p>One could also argue that publishers can&#8217;t really predict which titles will be successful and that profits are overly-dependent on a small group of very popular authors. And writing books takes time.</p>



<p>On the other hand, management&#8217;s efforts to grow the company&#8217;s academic arm by prioritising international sales, subject area expansion and digital scholarship could pay off. The balance sheet also looks pretty robust to me, with a decent net cash position.</p>



<p>All told, Bloomsbury continues to present as a quality business. But it&#8217;s also one I&#8217;d prefer to pick up during a period of general market malaise. </p>



<h2 class="wp-block-heading" id="h-stunning-gains">Stunning gains</h2>



<p>Another stock delivering the goods for private investors willing to stray off the beaten track has been <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cmcx/">LSE: CMCX</a>). </p>



<p>Shares in the online trading platform provider have rocketed nearly 190% this year. Again, this doesn&#8217;t take into account the dividends received over the period (8.3p per share).</p>



<div class="tmf-chart-singleseries" data-title="Cmc Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>There have been a number of catalysts for this incredible return. Chief among these has been an increase in trading activity among clients as markets have become <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/">more choppy</a>. In it&#8217;s most recent update, the company maintained its guidance on full-year operating profit of between £320m and £360m.</p>



<p>But investors have also been cheering news of potential partnerships, product launches, and a sustained period of cost-cutting.</p>



<h2 class="wp-block-heading" id="h-risky-pick">Risky pick</h2>



<p>As brilliant as recent returns have been, one does need to be aware that longer-term holders of CMC have endured a lot of pain. Between April 2021 and October 2023, the stock crashed by over 80% as the pandemic trading boom subsided.</p>



<p>It&#8217;s also worth noting that the share price has been drifting sideways for a couple of months. Perhaps it might take an earnings upgrade to move higher. In the absence of a significant geo-political event, I&#8217;m not convinced that will happen when half-year numbers are announced in November.</p>



<p>For this reason, CMC also stays on my watchlist. </p>
<p>The post <a href="https://www.fool.co.uk/2024/09/25/these-under-the-radar-ftse-250-stocks-havent-just-beaten-the-market-theyve-smashed-it/">These under-the-radar FTSE 250 stocks haven&#8217;t just beaten the market. They&#8217;ve thrashed it!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>This FTSE 250 stock has smashed Nvidia shares in 2024. Is it still worth me buying?</title>
                <link>https://www.fool.co.uk/2024/07/26/this-ftse-250-stock-has-smashed-nvidia-shares-in-2024-is-it-still-worth-me-buying/</link>
                                <pubDate>Fri, 26 Jul 2024 12:39:08 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1341473</guid>
                                    <description><![CDATA[<p>Flying under most investors' radars, this FTSE 250 stock has even outperformed the US chip maker year-to-date. Where will its share price go next?</p>
<p>The post <a href="https://www.fool.co.uk/2024/07/26/this-ftse-250-stock-has-smashed-nvidia-shares-in-2024-is-it-still-worth-me-buying/">This FTSE 250 stock has smashed Nvidia shares in 2024. Is it still worth me buying?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The <strong>FTSE 250</strong> is having a pretty good 2024 so far. However, an 8% gain looks pitiful when compared to some of the companies that feature in the index.</p>



<p>One in particular has blown through the roof&#8230; and just kept on going.</p>



<h2 class="wp-block-heading" id="h-top-performer">Top performer</h2>



<p>Prior to this year, I reckon <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cmcx/">LSE: CMCX</a>) was unlikely to be in the thoughts of many private investors.</p>



<p>Its form in 2024 could change that. As I type, shares in the online trading platform provider have rocketed 193% since January.</p>



<div class="tmf-chart-singleseries" data-title="Cmc Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Let&#8217;s put that in perspective. <strong>Nvidia</strong> has managed &#8216;only&#8217; 133% over the same period.</p>



<p>Sure, these are very different businesses, operating in different sectors, listed in different countries and exposed to different opportunities and risks. Oh, and the chip-maker has a valuation approaching almost $3trn.</p>



<p>But my point is that one doesn&#8217;t necessarily need to gravitate to the most &#8216;popular&#8217; names to make a killing in the stock market.</p>



<h2 class="wp-block-heading" id="h-still-a-buy-for-me">Still a buy for me?</h2>



<p>One issue with loading up now is the price that I&#8217;m now expected to pay. </p>



<p>With a market cap heading for £900m, CMC&#8217;s stock now changes hands for nearly 15 times forecast earnings. That may not sound particularly dear relative to the UK market in general and it&#8217;s not.</p>



<p>However, it&#8217;s quite pricey for a stock in the Financials sector (and a more speculative one prone to interference from regulators at that). This is worth bearing in mind considering the muted reaction to yesterday&#8217;s trading update (25 July). </p>



<p>To be fair, I didn&#8217;t read anything that concerned me. Trading between April and June had been in line with expectations and full-year guidance was kept steady with net operating income anticipated to come in between £320-360m.</p>



<p>But I wonder if the company will need to beat analyst projections before long if traders are to refrain from banking some profit.</p>



<p>This will probably require a bout of volatility in the markets &#8212; the sort that companies like CMC benefit from. Unfortunately, we can&#8217;t reliably predict those.</p>



<h2 class="wp-block-heading" id="h-growth-potential">Growth potential</h2>



<p>More positively, CMC&#8217;s growth strategy suggests there might be more good news ahead.</p>



<p>As part of its goal to reinforce its position &#8220;<em>as a market leader and innovator in the B2B fintech space</em>&#8220;, CMC announced a partnership deal with challenger bank Revolut in June. The onboarding of the latter&#8217;s clients is now under way and some are already trading. A further progress update will be given when half-year numbers are revealed in November.</p>



<p>Elsewhere, the company is looking to keep cutting costs and &#8220;<em>deliver margin expansion</em>&#8220;.</p>



<h2 class="wp-block-heading" id="h-income-stream">Income stream</h2>



<p>Another thing worth highlighting is that the shares yield 3.4% &#8212; marginally above the 3.2% I&#8217;d get from owning a FTSE 250 tracker fund.</p>



<p>To be clear, that passive income is never guaranteed. In fact, CMC&#8217;s <a href="https://www.fool.co.uk/investing-basics/how-shares-are-taxed-2/how-dividends-are-taxed/">dividend</a> history has been inconsistent to say the least. I definitely don&#8217;t see this as a stock I&#8217;d want to rely on purely for the cash its pays out.</p>



<h2 class="wp-block-heading" id="h-my-verdict">My verdict</h2>



<p>It goes without saying that this mid-cap isn&#8217;t quite the bargain it once was. However, I wouldn&#8217;t be averse to owning a slice as part of a <a href="https://www.fool.co.uk/investing-basics/what-is-diversification/">diversified portfolio</a> which, coincidentally, would definitely include some exposure to the tech titan mentioned earlier. </p>



<p>But I&#8217;d prefer to snap up my stake on a wider market sell-off. </p>
<p>The post <a href="https://www.fool.co.uk/2024/07/26/this-ftse-250-stock-has-smashed-nvidia-shares-in-2024-is-it-still-worth-me-buying/">This FTSE 250 stock has smashed Nvidia shares in 2024. Is it still worth me buying?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>This FTSE 250 stock is smoking its US competitors</title>
                <link>https://www.fool.co.uk/2024/07/11/this-ftse-250-stock-is-smoking-its-us-competitors/</link>
                                <pubDate>Thu, 11 Jul 2024 10:52:14 +0000</pubDate>
                <dc:creator><![CDATA[Jon Smith]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1333311</guid>
                                    <description><![CDATA[<p>Jon Smith reveals one FTSE 250 stock that has done better than US rivals in the past year, a trend he feels will continue going forward.</p>
<p>The post <a href="https://www.fool.co.uk/2024/07/11/this-ftse-250-stock-is-smoking-its-us-competitors/">This FTSE 250 stock is smoking its US competitors</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>England is beating the competition on the football pitch right now and is in the final of the Euros. In the stock market, I&#8217;m seeing a similar theme with some UK shares outperforming their international competition. I&#8217;ve spotted one example in the <strong>FTSE 250</strong> that&#8217;s making me seriously consider adding it to my portfolio.</p>



<h2 class="wp-block-heading" id="h-strong-performance">Strong performance </h2>



<p>I&#8217;m talking about <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-cmcx/">LSE:CMCX</a>). The company is a financial trading and investing platform, based in the UK. Via the platform, a user can buy and sell a wide variety of assets, including stocks, bonds, currencies and much more. </p>



<p>Over the past year, the stock has jumped by 120% as the business continues to grow and expand into new markets. The share price continued to rally last month, partly due to annual results that were released. The earnings report showed net operating income rose by 15% versus last year, helping to boost profit before tax by 21%.</p>



<p>The future looks bright from here too. The report noted <em>&#8220;new product launches and further technological upgrades&#8221;</em> that are coming in the next year. This should help to attract new clients and deepen existing ties with current clients.</p>



<p>It&#8217;s also seeking <em>&#8220;opportunities to drive further cost efficiencies and deliver margin expansion.&#8221;</em> This is important, because sometimes <a href="https://www.fool.co.uk/investing-basics/types-of-stocks/investing-in-growth-stocks-in-the-uk/" target="_blank" rel="noreferrer noopener">growth stocks</a> ignore keeping a lid on costs. It doesn&#8217;t matter if revenue is growing if costs are spiralling out of control!</p>


<div class="tmf-chart-singleseries" data-title="Cmc Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-the-us-alternatives">The US alternatives</h2>



<p>One criticism of the UK stock market is that it has lagged behind the US over the past year or so. This isn&#8217;t the case when it comes to some specific examples. In the US, <strong>Charles Schwab</strong> is a very similar company to CMC Markets. It offers investment and trading accounts for clients. Although it also has a broader wealth management division too, it&#8217;s know for it&#8217;s brokerage facilities mainly.</p>



<p>Over the past year, the Charles Schwab share price is up 30%. Don&#8217;t get me wrong, this is a good performance. However, it&#8217;s nowhere near the growth of CMC Markets. </p>



<p><strong>Interactive Brokers</strong> is another US firm that operates in the same space as CMC Markets. It offers an online platform where clients can go on and trade. Over the past year, the stock is up 45%.</p>



<p>It&#8217;s true that both of these US peers are much larger than CMC Markets by <a href="https://www.fool.co.uk/investing-basics/getting-started-in-investing/what-is-market-cap/" target="_blank" rel="noreferrer noopener">market cap</a>. Yet as an investor, I&#8217;d prefer to own a smaller stock that has a share price growing faster. This means that it can grow more without running out of potential due to a large market cap.</p>



<h2 class="wp-block-heading" id="h-tying-it-all-together">Tying it all together</h2>



<p>The main risk I see is that as CMC Markets continues to expand around the world, it could lose its edge. It might become too big too soon and become less profitable based on inefficiency. Further, if it tries to crack the US market, it will find itself directly up against Charles Schwab and Interactive Brokers.</p>



<p>Despite this, when looking for exposure to this sector, I much prefer the FTSE 250 option over the US alternatives. </p>
<p>The post <a href="https://www.fool.co.uk/2024/07/11/this-ftse-250-stock-is-smoking-its-us-competitors/">This FTSE 250 stock is smoking its US competitors</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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