Q3 Earnings: Review Quarterly, Manage Accordingly

As Q3 earnings reports are released by hundreds of companies, investors face the challenge of sifting through the information to identify which stocks merit attention. The final of six Rule Breakers Principles advises investors to review quarterly and manage accordingly, allowing enough time to observe real change without overlooking issues for too long.

Not all stocks require equal scrutiny; a brief AI-powered headline scan can help prioritize. Here's a prompt for this purpose: "I'm conducting a quarterly review of [company]. What are the most important developments from the past three months that a long-term shareholder should know? Compare the latest results with these reasons I bought it: [your reasons]. Keep it under 250 words and link to your sources."

The Motley Fool's Rule Breakers team evaluated CME Group (CME +0.08%), a leading derivatives marketplace, in their June 2025 Stock Advisor recommendation. Their case was based on volatility driving trading volume, international trading growth outpacing U.S. trading, and exceptionally high margins. The third quarter confirmed these points.

Average daily volume increased by 16% to a third-quarter record of 29.4 million contracts, while international volume grew by 22%. The operating margin remained roughly at 65%, consistent with the time of recommendation.

CME returned nearly $1 billion to shareholders through dividends and buybacks in Q3. However, the stock has trailed the S&P 500 since the recommendation, even when considering its dividend. For CME, managing accordingly means maintaining steady performance. The team still holds CME and has recommended it again in other Motley Fool services.

Given the current market conditions and CME's edge against European rivals, holding the stock remains justified. Investors should review their individual reasons for investing and use an AI-powered review to manage their stock selections effectively.