The FTSE 250 is awash with opportunities for share investors seeking quality undervalued companies. And CMC Markets (LSE:CMCX) is a top UK stock that’s soaring but still looks dirt cheap.
At 591.5p, CMC shares have rocketed 29% on Wednesday (1 July). That takes gains over the past 12 months to 132%. Yet despite the rally, the shares still offer tremendous value in my opinion.
Its forward price-to-earnings (P/E) ratio is a reasonable 12.1 times. But that’s not what’s caught my eye. What has is its rock-bottom price-to-earnings growth (PEG), which is brilliantly low relative to its profit trajectory.
I’ll come back to that shortly. But first, let’s look at how CMC has become one of the FTSE 250’s fastest-growing shares.
What’s happening?
CMC Markets is a financial services company providing online trading and investing platforms for retail, professional and institutional clients. It’s thriving as its higher-margin business-to-business (B2B) operation grows, and announced today that it had
“Entered the new financial year with strong momentum driven by exponential and exceptional growth in our B2B business. That momentum has continued to build and scale.“
In terms of cold hard numbers, CMC now reckons net operating income for this financial year (to March 2027) “to be at least £550m.” That’s substantially above the £460m-£480m it predicted just a month ago, and suggests year-on-year growth of 40% or more, up from 15% last year.
At the same time, its operating expenses (excluding bonuses for employees) forecasts remained unchanged at £280m.
The result?
CMC’s bottom line is also now tipped to explode. EBITDA growth — which was 14% in fiscal 2026 — is expected at 112% this time around, at £250m.
But why?
CMC Markets had traditionally focused on individual traders, which remains high-growth and massively profitable. But by increasingly providing its technology and market access to other financial firms under ‘white label’ agreements, the firm enjoys significant advantages including:
- More predictable earnings thanks to long partner contracts.
- Lower client acquisition spending, as B2B partners already have established customer bases.
- Better margins, because trading technology can serve additional customers at relatively little extra cost.
- Larger contracts that generate revenue equivalent to thousands of retail traders.
There are drawbacks to this approach. A few large partners can account for a significant share of revenue, and contract losses can have a devastating impact. CMC also needs to keep investing huge sums to remain competitive.
Yet the company has the bit between its teeth right now, as Wednesday’s update shows. And it has “a continuous pipeline of new B2B opportunities” to exploit as the market rapidly grows.
A FTSE 250 share to consider?
As I say, CMC Markets shares are still dirt cheap right now. Its PEG ratio for financial 2027 is 0.3. And it remains low at 0.8 for next year. For investors seeking UK growth stocks that offer compelling value, I think it’s one of the best FTSE 250 shares to consider today.
Should you invest £5,000 in Cmc Markets Plc right now?
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Royston Wild does not hold any positions in the companies mentioned.
