CBOE Stock Rises 26.1% YTD: A Signal for Investors to Hold Tight?

Cboe Global Markets, Inc. CBOE shares have gained 26.1% in the year-to-date period, outperforming the industry's growth of 15.9%, the Finance sector’s return of 12.5% and the Zacks S&P 500 composite’s rise of 9.8%.Cboe Global has outperformed its peers, including Intercontinental Exchange Inc. ICE, CME Group Inc.CME and Nasdaq, Inc.NDAQ. Shares of ICE, CME and NDAQ have gained 21.3%, 16.1% and 22.6%, respectively, year to date.Image Source: Zacks Investment ResearchWith a market capitalization of $25.77 billion, the average volume of shares traded in the last three months was 0.8 million. CBOE has a solid track record of beating earnings estimates in three of the last four quarters, while missing in one, delivering an average surprise of 1.89%.CBOE Trading Above 50-Day and 200-Day Moving AveragesShares of Cboe Global closed at $246.43 on Thursday and are trading above the 50-day and 200-day simple moving averages (SMA) of $238.63 and $217.89, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.Image Source: Zacks Investment ResearchCBOE’s Growth Projection EncouragesThe Zacks Consensus Estimate for Cboe Global’s 2025 earnings per share indicates a year-over-year increase of 11.5%. The consensus estimate for revenues is pegged at $2.27 billion, implying a year-over-year improvement of 9.6%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 5.9% and 4.3%, respectively, from the corresponding 2024 estimates. Earnings have grown 11.4% in the past five years, better than the industry average of 9.6%. The expected long-term earnings growth rate is 13.8%, outperforming the industry average of 10.4%.Optimist Analyst Sentiment on CBOEEight of the 13 analysts covering the stock have raised estimates for 2025, while six analysts have raised the same for 2026 over the past 60 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 earnings has moved up 0.9% and 1.3%, respectively, in the past 60 days.Image Source: Zacks Investment ResearchFactors Impacting CBOECboe Global’s organic strength lies in a diversified business mix that ensures uninterrupted revenue generation and recurring non-transaction revenues. CBOE remains on track to grow its recurring non-transaction revenues. Increases in access and capacity fees and proprietary market data fees are likely to boost Data Vantage’s net revenues. Data Vantage is well-positioned to perform well in 2025. CBOE estimates Data Vantage organic net revenue growth to be in the mid to high single-digit range in 2025.The company achieved a greater global breadth of services and products, as well as new distribution channels, apart from generating revenues and cost synergies through strategic buyouts.Banking on operational expertise, the company has been strengthening its balance sheet by improving its cash position and lowering its debt balance. Its leverage ratio, as well as the times interest earned, compares favorably with the industry average.CBOE’s strategic investments are well supported by solid capital management. However, higher expenses remain a major concern. Cboe Global has been facing intense competition due to increased market consolidation that tends to reduce market share, and this includes both product and price competition.The company’s investment in European, Canadian and Asia Pacific operations remains exposed to volatility in currency exchange rates through translation of net assets or equity to U.S. dollars. The company is also exposed to credit risk from third parties, including customers, counterparties and clearing agents.End NotesCboe Global’s growth strategy of expanding its product line across asset classes, broadening geographic reach, diversifying the business mix with recurring revenues and leveraging technology reflects its operational expertise. Its wealth distribution remains impressive. CBOE increased dividends for 13 straight years, and as of June 30, 2025, the company had $614.5 million of availability remaining under its existing share repurchase authorizations. Thus, it is better to adopt a wait-and-see approach for this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intercontinental Exchange Inc. (ICE): Free Stock Analysis Report CME Group Inc. (CME): Free Stock Analysis Report Nasdaq, Inc. (NDAQ): Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks