Q3 Earnings: Review Quarterly, Manage Accordingly

Over the next few weeks, hundreds of companies will report quarterly results. If you own 20, 50, or 100 stocks, the reports can pile up faster than you can read them, and it's hard to know which ones deserve your time.

The last of six Rule Breakers Principles is built for this stretch: Review quarterly, manage accordingly.

A quarter gives a business enough time to show real change, whether that's a strong report or a sharp drop, without letting problems go unnoticed for long.

You don't need to give every stock the same attention.

• Holdings that comprise about 5% of your portfolio deserve the full treatment, so read the earnings release, skim the conference call, and check what competitors are saying.
• Positions between about 1.5% and 5% usually need only a scan of the headlines that have occurred since your last check-in.
• Below 1.5%, it's fine to let a quarter slide. If any of those small positions turn into winners, they'll grow into bigger ones and earn more of your time.

Let AI Do the First Pass

A short AI prompt can handle much of that headline scan. Here's one to adapt:

I'm doing 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.

Asking for links is worth the extra words. AI tools can get facts wrong, so click through the primary sources before you act on anything.

Now try it on CME Group (NASDAQ:CME), which runs the world's leading derivatives marketplace and reported results on Oct. 21. When Team Rule Breakers recommended the company in Stock Advisor in June 2025, the case rested mainly on volatility driving trading volume, international trading growing faster than U.S. trading, and exceptionally high margins.

The third quarter backed up each point. Average daily volume rose 16% to a third-quarter record of 29.4 million contracts. International volume grew 22%. The operating margin was roughly 65%, in line with where it stood when the team recommended the stock. CME also returned nearly $1 billion to shareholders through dividends and buybacks.

Manage Accordingly

For CME, managing accordingly means holding steady.

The case against holding starts with the share price. The team recommended CME at $270.59, and shares trade around $308 today. That's a solid gain, but the stock has trailed the S&P 500 since, even counting its dividend. Anyone hoping for a market beater has been disappointed so far.

A quarterly review, though, judges the business against the reasons you bought it. The team wanted a low-volatility stock that profits when markets turn turbulent, and this month has fit that description so far. While AI-linked stocks have slid, CME's shares have climbed more than 10%.

Holding CME makes sense if you believe markets will stay jumpy and that CME can keep its edge against European rivals. Team Rule Breakers still holds the stock and has recommended it again in other Motley Fool services since that recommendation last June.

The Rule Breakers Team has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CME Group. The Motley Fool has a disclosure policy.