The FTSE 100 index has delivered decent gains in 2026. Year to date, it’s up about 6%.
Investors could have pocketed much bigger gains from individual UK stocks though. Take a look at the CMC Markets (LSE: CMCX) share price – it’s up about 90%.
I’ve been bullish on CMC Markets for a while
I’ve covered the trading and investment platform operator a few times this year. And I’ve always been bullish on the stock given the high level of volatility in the financial markets at the moment.
I was right to be bullish. Because the stock just keeps rising – today it has jumped another 23% on the back of a brilliant trading update.
A huge hike to guidance
In the update, the company says that the momentum that it highlighted in its FY26 results has continued to build and scale. As a result, the group now expects net operating income for FY27 to be at least £550m, materially ahead of previous guidance of £460m to £480m, with EBITDA guidance of £250m.
“The strength of this performance reflects the scale of our B2B platforms driving operational gearing and delivering higher profit margins as income growth is delivered against a largely fixed cost base.”
CMC Markets
It goes on to say that performance is being driven by the operational gearing of its B2B platforms (CMC provides whitelabel trading platforms for other institutions). It adds that the B2B platform business is well positioned to scale with several important milestones expected over the next 12 months and a continuous pipeline of new opportunities.
Worth considering for an ISA or SIPP?
Is there an investment opportunity to consider here? I think so.
While the stock has had a great run this year, I see the potential for further gains in the medium to long run. Taking a three-to-five year view, I reckon this company will deliver impressive returns for investors.
One reason I’m bullish is the backdrop that I noted above. Financial markets continue to be volatile, and this is drawing in traders and investors, which is great for a trading and investment platform operator like CMC Markets.
Another is the company’s B2B operations. Not only do these operations give the company a high level of scalability but they also have the potential to push profits up sharply due to the largely fixed cost base.
Finally, there’s the valuation. It still looks reasonable, even after today’s 23% share price pop.
Before today, the stock was trading on a price-to-earnings (P/E) ratio of about 12.8 looking at the consensus earnings forecast of 35.8p per share. If we assume that earnings will now be 10% higher than previous forecasts, the P/E ratio is still only about 14.
I’ll point out that there also’s a nice dividend here. At present, the yield is around 3.2%.
Now, there are risks of course. A slowdown in trading activity and competition from bigger rivals are two to think about.
Overall though, I see the risk/reward skew as attractive. I believe CMC Markets shares are worth considering.
Should you invest £5,000 in Cmc Markets Plc right now?
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Edward Sheldon does not hold any positions in the companies mentioned.
