The FTSE 250 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.

One in particular has blown through the roof… and just kept on going.

Top performer

Prior to this year, I reckon CMC Markets (LSE: CMCX) was unlikely to be in the thoughts of many private investors.

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

Let’s put that in perspective. Nvidia has managed ‘only’ 133% over the same period.

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.

But my point is that one doesn’t necessarily need to gravitate to the most ‘popular’ names to make a killing in the stock market.

Still a buy for me?

One issue with loading up now is the price that I’m now expected to pay.

With a market cap heading for £900m, CMC’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’s not.

However, it’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’s trading update (25 July).

To be fair, I didn’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.

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

This will probably require a bout of volatility in the markets — the sort that companies like CMC benefit from. Unfortunately, we can’t reliably predict those.

Growth potential

More positively, CMC’s growth strategy suggests there might be more good news ahead.

As part of its goal to reinforce its position “as a market leader and innovator in the B2B fintech space“, CMC announced a partnership deal with challenger bank Revolut in June. The onboarding of the latter’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.

Elsewhere, the company is looking to keep cutting costs and “deliver margin expansion“.

Income stream

Another thing worth highlighting is that the shares yield 3.4% — marginally above the 3.2% I’d get from owning a FTSE 250 tracker fund.

To be clear, that passive income is never guaranteed. In fact, CMC’s dividend history has been inconsistent to say the least. I definitely don’t see this as a stock I’d want to rely on purely for the cash its pays out.

My verdict

It goes without saying that this mid-cap isn’t quite the bargain it once was. However, I wouldn’t be averse to owning a slice as part of a diversified portfolio which, coincidentally, would definitely include some exposure to the tech titan mentioned earlier.

But I’d prefer to snap up my stake on a wider market sell-off.