We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cboe Global (CBOE) Rises 19% YTD: Will the Bull Run Continue?
Read MoreHide Full Article
Cboe Global Markets’ (CBOE - Free Report) shares have gained 19.4% year to date, outperforming the industry’s increase of 13%. The Finance sector increased 4.1% and the Zacks S&P 500 composite gained 16% in the same period. With a market capitalization of $15.8 billion, the average volume of shares traded in the last three months was 0.6 million.
Strong market position, global reach, strength in its proprietary products and solid capital position continue to drive this largest stock exchange operator by volume in the United States and a leading market globally for ETP trading.
CBOE, carrying a Zacks Rank #3 (Hold), has a decent history of delivering earnings surprises in the last four reported quarters. Its earnings grew 13.7% in the last five years, better than the industry average of 10.5%.
Return on equity, a profitability measure of how efficiently a company utilizes its shareholders' money, was 22% in the trailing 12 months, up 200 basis points year over year and better than the industry average of 11.8%.
Image Source: Zacks Investment Research
Can It Retain the Momentum?
The Zacks Consensus Estimate for 2023 earnings is pegged at $7.27, suggesting a year-over-year increase of 4.9% on 9.1% higher revenues of $1.9 billion. The consensus estimate for 2024 earnings is pegged at $7.51, indicating a year-over-year increase 3.3% on 3.4% higher revenues of $2 billion.
CBOE boasts operations in the highest-value markets. These are powered by a diversified business mix with recurring revenues, growth acceleration with recurring non-transaction revenues, technology and an impressive inorganic growth story that should fuel the top line. 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.
With its latest dividend hike, CBOE increased dividends for 13 straight years. It also pursued share buybacks. As of Jun 30, 2023, CBOE had $139.8 million left under its current share repurchase authorization.
The Zacks Consensus Estimate for CME Group’s 2023 and 2024 earnings indicates a respective 13.4% and 1.4% year-over-year increase. The consensus estimate has risen 2% for 2023 and 2.5% for 2024 in the past 30 days. CME delivered a four-quarter average earnings surprise of 2.92%. Shares have risen 19.3% year to date. The expected long-term earnings growth rate is pegged at 7.3%.
The Zacks Consensus Estimate for Intercontinental Exchange’s 2023 and 2024 EPS indicates a 6.6% and 8.3% year-over-year increase, respectively. The consensus estimate has risen 1.6% for 2023 and 1.2% for 2024 in the past 30 days. ICE delivered a four-quarter average earnings surprise of 2.07%. The expected long-term earnings growth rate is pegged at 8.8%. Shares have risen 11.4% year to date.
Marsh & McLennan delivered a four-quarter average earnings surprise of 3.44%. The Zacks Consensus Estimate for 2023 and 2024 earnings indicates a respective 12.6% and 9.2% year-over-year increase. The consensus estimate has risen 0.1% for 2023 and 1.3% for 2024 in the past 30 days. The expected long-term earnings growth rate is pegged at 10.5%. Its shares have risen 15.6% year to date.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Cboe Global (CBOE) Rises 19% YTD: Will the Bull Run Continue?
Cboe Global Markets’ (CBOE - Free Report) shares have gained 19.4% year to date, outperforming the industry’s increase of 13%. The Finance sector increased 4.1% and the Zacks S&P 500 composite gained 16% in the same period. With a market capitalization of $15.8 billion, the average volume of shares traded in the last three months was 0.6 million.
Strong market position, global reach, strength in its proprietary products and solid capital position continue to drive this largest stock exchange operator by volume in the United States and a leading market globally for ETP trading.
CBOE, carrying a Zacks Rank #3 (Hold), has a decent history of delivering earnings surprises in the last four reported quarters. Its earnings grew 13.7% in the last five years, better than the industry average of 10.5%.
Return on equity, a profitability measure of how efficiently a company utilizes its shareholders' money, was 22% in the trailing 12 months, up 200 basis points year over year and better than the industry average of 11.8%.
Image Source: Zacks Investment Research
Can It Retain the Momentum?
The Zacks Consensus Estimate for 2023 earnings is pegged at $7.27, suggesting a year-over-year increase of 4.9% on 9.1% higher revenues of $1.9 billion. The consensus estimate for 2024 earnings is pegged at $7.51, indicating a year-over-year increase 3.3% on 3.4% higher revenues of $2 billion.
CBOE boasts operations in the highest-value markets. These are powered by a diversified business mix with recurring revenues, growth acceleration with recurring non-transaction revenues, technology and an impressive inorganic growth story that should fuel the top line. 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.
With its latest dividend hike, CBOE increased dividends for 13 straight years. It also pursued share buybacks. As of Jun 30, 2023, CBOE had $139.8 million left under its current share repurchase authorization.
Stocks to Consider
Some top-ranked stocks from the insurance industry are CME Group (CME - Free Report) , Intercontinental Exchange (ICE - Free Report) and Marsh & McLennan Companies (MMC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CME Group’s 2023 and 2024 earnings indicates a respective 13.4% and 1.4% year-over-year increase. The consensus estimate has risen 2% for 2023 and 2.5% for 2024 in the past 30 days. CME delivered a four-quarter average earnings surprise of 2.92%. Shares have risen 19.3% year to date. The expected long-term earnings growth rate is pegged at 7.3%.
The Zacks Consensus Estimate for Intercontinental Exchange’s 2023 and 2024 EPS indicates a 6.6% and 8.3% year-over-year increase, respectively. The consensus estimate has risen 1.6% for 2023 and 1.2% for 2024 in the past 30 days. ICE delivered a four-quarter average earnings surprise of 2.07%. The expected long-term earnings growth rate is pegged at 8.8%. Shares have risen 11.4% year to date.
Marsh & McLennan delivered a four-quarter average earnings surprise of 3.44%. The Zacks Consensus Estimate for 2023 and 2024 earnings indicates a respective 12.6% and 9.2% year-over-year increase. The consensus estimate has risen 0.1% for 2023 and 1.3% for 2024 in the past 30 days. The expected long-term earnings growth rate is pegged at 10.5%. Its shares have risen 15.6% year to date.