Cboe Global Markets, Inc.’s (CBOE - Free Report) optimistic medium-term target, strong market position, strategic acquisitions, strength in its proprietary products and prudent capital deployment make it worth retaining in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for Cboe Global’s 2022 earnings is pegged at $6.78, indicating a 12.1% increase from the year-ago reported figure on 17.4% higher revenues of $1.7 billion.
The consensus estimate for 2023 earnings stands at $6.99, indicating a 2.9% increase from the year-ago reported figure on 4.9% higher revenues of $1.8 billion.
Estimate Revision
The Zacks Consensus Estimate for 2022 has moved north by 1.5%, while the consensus estimate for 2023 has moved 2.8% in the past 30 days, reflecting analyst optimism.
Earnings Surprise History
CBOE has a decent earnings surprise history. It beat estimates in three of the last four quarters and missed in one, with the average being 4.92%.
Return on Equity
Return on equity, a measure reflecting how efficiently a company utilizes shareholders’ money, was 21.2% in the trailing twelve months, better than the industry average of 11.4%.
Zacks Rank & Price Performance
Cboe Global currently sports a Zacks Rank #1 (Strong Buy). In the past year, the stock has lost 2.3%, much narrower than the industry’s decline of 33.7%.
Growth Drivers
Cboe Global boasts the largest stock exchange operator by volume in the United States and a leading market for ETP trading globally. Growth strategy of the stock exchange operator revolves around expanding its product, broadening its geographic reach to the highest value markets, diversifying its business mix with recurring revenues, ramping up growth with recurring non-transaction revenues and leveraging technology.
CBOE expects total organic net revenue growth in the range of 14% to 16%, up from earlier guidance of 9% to 11%. The company projects $23 million to $26 million of the 2022 investment spend to directly drive incremental revenue growth.
Cboe Global continues to anticipate Data and Access Solutions organic net revenue growth in 2022 will be in the 10% to 13% and remain confident in the medium-term guidance of 7% to 10%. Higher logical port fees as well as physical port fees in the Options and North American Equities segments and increased proprietary market data fees are likely to drive the Data and access solutions segment.
Cboe Global Markets boasts a compelling inorganic growth story given its prudent acquisitions. In June 2022, it closed the buyout of Aequitas (Neo exchange) in a bid to build on a comprehensive equities platform for the Canadian market. In May 2022, it acquired Eris Digital Holdings, LLC, that enables CBOE to enter the digital asset spot and derivatives marketplaces to focus on robust regulatory compliance, data and transparency.
Cboe Global Markets continues to expect acquisitions held less than a year to add 2% to 3% to total net revenue growth in 2022.
CBOE has hiked its dividend each year since its IPO, and increased the same by 4.2% in August 2022, marking the 12th consecutive year of dividend hike. Its dividend witnessed an eight-year (2015-2022) CAGR of 11.5%. Also, this stock exchange operator had $233 million remaining under its existing share repurchase authorization as on Sep 30, 2022.
Other Stocks to Consider
Some other top-ranked stocks from the finance sector are Allianz SE (ALIZY - Free Report) , Ameriprise Financial, Inc. (AMP - Free Report) and Affiliated Managers Group, Inc. (AMG - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allianz’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 12.96%. In the past year, the insurer has lost 8.7%.
The Zacks Consensus Estimate for ALIZY’s 2022 and 2023 earnings has moved 4.4% and 3.8% north, respectively, in the past 30 days.
Ameriprise Financial’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 4.83%. In the past year, Ameriprise Financial has rallied 7.1%.
The Zacks Consensus Estimate for 2022 and 2023 earnings indicates 7.9% and 18.4% year-over-year growth, respectively.
Affiliated Managers’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 5.20%. In the past year, Affiliated Managers has lost 7.9%.
The Zacks Consensus Estimate for AMG’s 2022 and 2023 earnings has moved 8.4% and 5.8% north in the past 30 days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Cboe Global Markets, Inc.’s (CBOE - Free Report) optimistic medium-term target, strong market position, strategic acquisitions, strength in its proprietary products and prudent capital deployment make it worth retaining in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for Cboe Global’s 2022 earnings is pegged at $6.78, indicating a 12.1% increase from the year-ago reported figure on 17.4% higher revenues of $1.7 billion.
The consensus estimate for 2023 earnings stands at $6.99, indicating a 2.9% increase from the year-ago reported figure on 4.9% higher revenues of $1.8 billion.
Estimate Revision
The Zacks Consensus Estimate for 2022 has moved north by 1.5%, while the consensus estimate for 2023 has moved 2.8% in the past 30 days, reflecting analyst optimism.
Earnings Surprise History
CBOE has a decent earnings surprise history. It beat estimates in three of the last four quarters and missed in one, with the average being 4.92%.
Return on Equity
Return on equity, a measure reflecting how efficiently a company utilizes shareholders’ money, was 21.2% in the trailing twelve months, better than the industry average of 11.4%.
Zacks Rank & Price Performance
Cboe Global currently sports a Zacks Rank #1 (Strong Buy). In the past year, the stock has lost 2.3%, much narrower than the industry’s decline of 33.7%.
Growth Drivers
Cboe Global boasts the largest stock exchange operator by volume in the United States and a leading market for ETP trading globally. Growth strategy of the stock exchange operator revolves around expanding its product, broadening its geographic reach to the highest value markets, diversifying its business mix with recurring revenues, ramping up growth with recurring non-transaction revenues and leveraging technology.
CBOE expects total organic net revenue growth in the range of 14% to 16%, up from earlier guidance of 9% to 11%. The company projects $23 million to $26 million of the 2022 investment spend to directly drive incremental revenue growth.
Cboe Global continues to anticipate Data and Access Solutions organic net revenue growth in 2022 will be in the 10% to 13% and remain confident in the medium-term guidance of 7% to 10%. Higher logical port fees as well as physical port fees in the Options and North American Equities segments and increased proprietary market data fees are likely to drive the Data and access solutions segment.
Cboe Global Markets boasts a compelling inorganic growth story given its prudent acquisitions. In June 2022, it closed the buyout of Aequitas (Neo exchange) in a bid to build on a comprehensive equities platform for the Canadian market. In May 2022, it acquired Eris Digital Holdings, LLC, that enables CBOE to enter the digital asset spot and derivatives marketplaces to focus on robust regulatory compliance, data and transparency.
Cboe Global Markets continues to expect acquisitions held less than a year to add 2% to 3% to total net revenue growth in 2022.
CBOE has hiked its dividend each year since its IPO, and increased the same by 4.2% in August 2022, marking the 12th consecutive year of dividend hike. Its dividend witnessed an eight-year (2015-2022) CAGR of 11.5%. Also, this stock exchange operator had $233 million remaining under its existing share repurchase authorization as on Sep 30, 2022.
Other Stocks to Consider
Some other top-ranked stocks from the finance sector are Allianz SE (ALIZY - Free Report) , Ameriprise Financial, Inc. (AMP - Free Report) and Affiliated Managers Group, Inc. (AMG - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allianz’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 12.96%. In the past year, the insurer has lost 8.7%.
The Zacks Consensus Estimate for ALIZY’s 2022 and 2023 earnings has moved 4.4% and 3.8% north, respectively, in the past 30 days.
Ameriprise Financial’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 4.83%. In the past year, Ameriprise Financial has rallied 7.1%.
The Zacks Consensus Estimate for 2022 and 2023 earnings indicates 7.9% and 18.4% year-over-year growth, respectively.
Affiliated Managers’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 5.20%. In the past year, Affiliated Managers has lost 7.9%.
The Zacks Consensus Estimate for AMG’s 2022 and 2023 earnings has moved 8.4% and 5.8% north in the past 30 days.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Get the latest research report on AMP - FREE
Get the latest research report on CBOE - FREE
Get the latest research report on AMG - FREE
Get the latest research report on ALIZY - FREE