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Here's Why You Should Stay Invested in Cboe Global (CBOE)
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Cboe Global Markets' (CBOE - Free Report) strong market position, global reach, strength in its proprietary products and solid capital position make it worth retaining in one’s portfolio.
CBOE has a decent history of delivering earnings surprises in three of the last four reported quarters. Its earnings grew 13.7% in the last five years, better than the industry average of 10.5%.
Cboe Global’s ROE for the trailing 12 months was 22.3%, better than the industry average of 10.8%. It has a VGM Score of B. The VGM Score rates stocks on their combined weighted styles, helping to identify those with the most attractive value, best growth and most promising momentum.
Zacks Rank and Price Performance
CBOE carries a Zacks Rank #3 (Hold).
Shares of Cboe Global have gained 8.2% year to date, outperforming the industry’s increase of 7.7%.
Image Source: Zacks Investment Research
Optimistic Growth Projection
The Zacks Consensus Estimate for Cboe Global’s 2023 earnings is pegged at $7.18, indicating a 3.6% increase from the year-ago reported figure on 8.3% higher revenues of $1.9 billion. The consensus estimate for 2024 is pegged at $7.43, indicating a year-over-year improvement of 3.6% on 3.5% higher revenues of $2 billion.
It has a Growth Score of A. The Growth Style Score analyzes the growth prospects of a company.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2023 and 2024 has moved 0.3% and 0.4% north, respectively in the past 60 days, reflecting analyst optimism.
Growth Drivers
It is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading.
CBOE’s top line should continue to benefit from its geographic reach to the highest-value markets, a diversified business mix with recurring revenues, growth acceleration with recurring non-transaction revenues and leveraging technology. For the mid-to-long term, CBOE estimates organic top-line compound average growth of 4% to 6%.
Organic growth remained a key strength at Cboe Global Markets, as reflected in its revenue growth story. A volatile market continues to aid trading volume. CBOE estimates organic total net revenue growth between 7% and 9% in 2023. It estimates revenue-enhancing investments to be in the range of $28-$30 million in 2023.
Cboe Global Markets has an impressive inorganic growth story. The Bats Global buyout expanded and diversified its portfolio. Cboe Global Markets expects acquisitions held less than a year to add around 0.5% to total net revenue growth in 2023.
Capital Deployment
Banking on operational excellence, CBOE increased dividends for 12 straight years as well as pursued share buybacks. As of Mar 31, 2023, CBOE had $147.9 million left under its current share repurchase authorization.
RLI delivered a four-quarter average earnings surprise of 43.50%. Year to date, the insurer has lost 1.8%. The Zacks Consensus Estimate for RLI’s 2023 and 2024 earnings indicates respective year-over-year increases of 7.9% and 3.9%. RLI sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HCI Group delivered a four-quarter average earnings surprise of 308.82%. Year to date, the insurer has gained 3%. The Zacks Consensus Estimate for HCI’s 2023 and 2024 earnings indicates respective year-over-year increases of 149.3% and 35.2%. It sports a Zacks Rank #1.
CME Group delivered a four-quarter average earnings surprise of 2.20%. Year to date, the stock has gained 8.9%. The Zacks Consensus Estimate for CME’s 2023 and 2024 earnings indicates respective year-over-year increases of 9.5% and 1.5%. It carries a Zacks Rank #2 (Buy).
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Here's Why You Should Stay Invested in Cboe Global (CBOE)
Cboe Global Markets' (CBOE - Free Report) strong market position, global reach, strength in its proprietary products and solid capital position make it worth retaining in one’s portfolio.
CBOE has a decent history of delivering earnings surprises in three of the last four reported quarters. Its earnings grew 13.7% in the last five years, better than the industry average of 10.5%.
Cboe Global’s ROE for the trailing 12 months was 22.3%, better than the industry average of 10.8%. It has a VGM Score of B. The VGM Score rates stocks on their combined weighted styles, helping to identify those with the most attractive value, best growth and most promising momentum.
Zacks Rank and Price Performance
CBOE carries a Zacks Rank #3 (Hold).
Shares of Cboe Global have gained 8.2% year to date, outperforming the industry’s increase of 7.7%.
Image Source: Zacks Investment Research
Optimistic Growth Projection
The Zacks Consensus Estimate for Cboe Global’s 2023 earnings is pegged at $7.18, indicating a 3.6% increase from the year-ago reported figure on 8.3% higher revenues of $1.9 billion. The consensus estimate for 2024 is pegged at $7.43, indicating a year-over-year improvement of 3.6% on 3.5% higher revenues of $2 billion.
It has a Growth Score of A. The Growth Style Score analyzes the growth prospects of a company.
Northbound Estimate Revision
The Zacks Consensus Estimate for 2023 and 2024 has moved 0.3% and 0.4% north, respectively in the past 60 days, reflecting analyst optimism.
Growth Drivers
It is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading.
CBOE’s top line should continue to benefit from its geographic reach to the highest-value markets, a diversified business mix with recurring revenues, growth acceleration with recurring non-transaction revenues and leveraging technology. For the mid-to-long term, CBOE estimates organic top-line compound average growth of 4% to 6%.
Organic growth remained a key strength at Cboe Global Markets, as reflected in its revenue growth story. A volatile market continues to aid trading volume. CBOE estimates organic total net revenue growth between 7% and 9% in 2023. It estimates revenue-enhancing investments to be in the range of $28-$30 million in 2023.
Cboe Global Markets has an impressive inorganic growth story. The Bats Global buyout expanded and diversified its portfolio. Cboe Global Markets expects acquisitions held less than a year to add around 0.5% to total net revenue growth in 2023.
Capital Deployment
Banking on operational excellence, CBOE increased dividends for 12 straight years as well as pursued share buybacks. As of Mar 31, 2023, CBOE had $147.9 million left under its current share repurchase authorization.
Stocks to Consider
Some better-ranked stocks from the insurance industry are RLI Corporation (RLI - Free Report) , HCI Group (HCI - Free Report) and CME Group (CME - Free Report) .
RLI delivered a four-quarter average earnings surprise of 43.50%. Year to date, the insurer has lost 1.8%. The Zacks Consensus Estimate for RLI’s 2023 and 2024 earnings indicates respective year-over-year increases of 7.9% and 3.9%. RLI sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HCI Group delivered a four-quarter average earnings surprise of 308.82%. Year to date, the insurer has gained 3%. The Zacks Consensus Estimate for HCI’s 2023 and 2024 earnings indicates respective year-over-year increases of 149.3% and 35.2%. It sports a Zacks Rank #1.
CME Group delivered a four-quarter average earnings surprise of 2.20%. Year to date, the stock has gained 8.9%. The Zacks Consensus Estimate for CME’s 2023 and 2024 earnings indicates respective year-over-year increases of 9.5% and 1.5%. It carries a Zacks Rank #2 (Buy).