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Why You Should Stay Invested in Cboe Global (CBOE) Stock
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Cboe Global Markets’ (CBOE - Free Report) solid market presence, global reach, strength in its proprietary products, solid capital position, prudent capital deployment and increased medium-term target bode well for growth. These, along with favorable growth estimates, make it worth retaining in one’s portfolio.
CBOE has a decent track record of beating earnings estimates in the last five quarters. It has a VGM Score of B.
Zacks Rank & Price Performance
Cboe Global currently carries a Zacks Rank #3 (Hold). Year to date, the stock has lost 12.2% compared with the industry’s decrease of 31.5%.
Image Source: Zacks Investment Research
Growth Projections
The Zacks Consensus Estimate for Cboe Global’s 2022 earnings is pegged at $6.32, indicating a 4.5% increase from the year-ago reported figure on 9.1% higher revenues of $1.6 billion. The consensus estimate for 2023 earnings is pegged at $6.58, indicating a 4% increase from the year-ago reported figure on 5.1% higher revenues of $1.7 billion.
Return on equity was 18.9% in the trailing twelve months, better than the industry average of 13.5%.
Estimate Revision
The Zacks Consensus Estimate for 2022 has moved north by 0.2%, while the consensus estimate for 2023 has moved 0.3% in the past 30 days, reflecting analyst optimism.
Business Tailwinds
CBOE Global’s growth strategy encompasses product portfolio expansion, extending its geographic reach to the highest value markets, diversifying business mix with recurring revenues, ramping up growth with recurring non-transaction revenues and leveraging technology.
CBOE Global expects to deliver total net revenue growth of 5-7% annually. Cboe Global expects organic net revenues from Data and Access Solutions to increase approximately 8% to 11% in 2022, up from the earlier guidance of 7% to 10%. For the mid-to long term, CBOE estimates organic top-line compounded average growth of 4% to 6%.
Being the largest stock exchange operator by volume in the United States and a leading market globally for ETP trading, CBOE also remains focused on accelerating non-transaction revenue growth.
Cboe Global Markets has an impressive inorganic growth story. While the acquisition of Bats Global expanded and diversified its portfolio, MATCHNow helped it venture into Canada. BIDS Trading provided a meaningful presence in the substantial off-exchange segment of the U.S. equities market, while Chi-X Asia Pacific Holdings expanded its global equities business into the Asia Pacific region. CBOE estimates acquisitions held less than a year to add 2% to 3% to total net revenue growth in 2022, up from 1% to 3% expected earlier.
Effective Capital Deployment
Cboe Global Markets enjoys a strong liquidity position that supports prudent capital deployment. CBOE has hiked its dividend every year since its IPO and increased the same for 11 consecutive years. Also, as of Mar 31, 2022, CBOE had $248.9 million remaining under its existing share repurchase authorization.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are HCI Group, Inc. (HCI - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) . While HCI Group and American Financial sport a Zacks Rank #1 (Strong Buy), Cincinnati Financial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HCI Group’s 2022 and 2023 earnings has moved 33.3% and 40% north, respectively, in the past 60 days. In the past year, HCI Group’s stock has lost 33.2%.
The Zacks Consensus Estimate for HCI’s 2022 and 2023 earnings per share indicates a year-over-year increase of 280.9% and 75%, respectively.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.72%. In the past year, American Financial has gained 10.8%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 9.8% and 6.9% north, respectively, in the past 60 days.
The bottom line of Cincinnati Financial surpassed earnings estimates in each of the last four quarters, the average being 32.55%. In the past year, the CINF stock has lost 0.1%.
The Zacks Consensus Estimate for Cincinnati Financial’s 2022 and 2023 earnings has moved 3.6% and 1.7% north, respectively, in the past 60 days.
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Why You Should Stay Invested in Cboe Global (CBOE) Stock
Cboe Global Markets’ (CBOE - Free Report) solid market presence, global reach, strength in its proprietary products, solid capital position, prudent capital deployment and increased medium-term target bode well for growth. These, along with favorable growth estimates, make it worth retaining in one’s portfolio.
CBOE has a decent track record of beating earnings estimates in the last five quarters. It has a VGM Score of B.
Zacks Rank & Price Performance
Cboe Global currently carries a Zacks Rank #3 (Hold). Year to date, the stock has lost 12.2% compared with the industry’s decrease of 31.5%.
Image Source: Zacks Investment Research
Growth Projections
The Zacks Consensus Estimate for Cboe Global’s 2022 earnings is pegged at $6.32, indicating a 4.5% increase from the year-ago reported figure on 9.1% higher revenues of $1.6 billion. The consensus estimate for 2023 earnings is pegged at $6.58, indicating a 4% increase from the year-ago reported figure on 5.1% higher revenues of $1.7 billion.
It has a Growth Score of A.
Return on Equity
Return on equity was 18.9% in the trailing twelve months, better than the industry average of 13.5%.
Estimate Revision
The Zacks Consensus Estimate for 2022 has moved north by 0.2%, while the consensus estimate for 2023 has moved 0.3% in the past 30 days, reflecting analyst optimism.
Business Tailwinds
CBOE Global’s growth strategy encompasses product portfolio expansion, extending its geographic reach to the highest value markets, diversifying business mix with recurring revenues, ramping up growth with recurring non-transaction revenues and leveraging technology.
CBOE Global expects to deliver total net revenue growth of 5-7% annually. Cboe Global expects organic net revenues from Data and Access Solutions to increase approximately 8% to 11% in 2022, up from the earlier guidance of 7% to 10%. For the mid-to long term, CBOE estimates organic top-line compounded average growth of 4% to 6%.
Being the largest stock exchange operator by volume in the United States and a leading market globally for ETP trading, CBOE also remains focused on accelerating non-transaction revenue growth.
Cboe Global Markets has an impressive inorganic growth story. While the acquisition of Bats Global expanded and diversified its portfolio, MATCHNow helped it venture into Canada. BIDS Trading provided a meaningful presence in the substantial off-exchange segment of the U.S. equities market, while Chi-X Asia Pacific Holdings expanded its global equities business into the Asia Pacific region. CBOE estimates acquisitions held less than a year to add 2% to 3% to total net revenue growth in 2022, up from 1% to 3% expected earlier.
Effective Capital Deployment
Cboe Global Markets enjoys a strong liquidity position that supports prudent capital deployment. CBOE has hiked its dividend every year since its IPO and increased the same for 11 consecutive years. Also, as of Mar 31, 2022, CBOE had $248.9 million remaining under its existing share repurchase authorization.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are HCI Group, Inc. (HCI - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) . While HCI Group and American Financial sport a Zacks Rank #1 (Strong Buy), Cincinnati Financial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HCI Group’s 2022 and 2023 earnings has moved 33.3% and 40% north, respectively, in the past 60 days. In the past year, HCI Group’s stock has lost 33.2%.
The Zacks Consensus Estimate for HCI’s 2022 and 2023 earnings per share indicates a year-over-year increase of 280.9% and 75%, respectively.
American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.72%. In the past year, American Financial has gained 10.8%.
The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 9.8% and 6.9% north, respectively, in the past 60 days.
The bottom line of Cincinnati Financial surpassed earnings estimates in each of the last four quarters, the average being 32.55%. In the past year, the CINF stock has lost 0.1%.
The Zacks Consensus Estimate for Cincinnati Financial’s 2022 and 2023 earnings has moved 3.6% and 1.7% north, respectively, in the past 60 days.