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Cboe Global (CBOE) Stock Surges 24% YTD: More Upside Left?
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Cboe Global Markets’ (CBOE - Free Report) shares have gained 23.8% year to date, outperforming the industry’s increase of 10.7%. The Finance sector increased 4.4% and the Zacks S&P 500 composite gained 13.9% in the same period. With a market capitalization of $16.4 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 CBOE shares.
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 $7.28, suggesting a year-over-year increase of 5.1% on 9.3% higher revenues of $1.9 billion. The consensus estimate for 2024 earnings is pegged at $7.56, indicating a year-over-year increase 3.8% on 3.6% higher revenues of $2 billion. The expected long-term earnings growth is 6.5%.
CBOE is the largest stock exchange operator by volume in the United States and a leading market globally for ETP trading. CBOE boasts operations in the highest-value markets, given a diversified business mix with recurring revenues, growth acceleration with recurring non-transaction revenues, technology and prudent buyouts.
For the mid-to-long term, CBOE estimates organic top-line compound average growth of 4% to 6%.
A volatile market drives trading volume that in turn fuels top-line growth. 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.
Banking on operational expertise, CBOE increased dividends for 13 straight years. It also buys back share. As of Jun 30, 2023, CBOE had $139.8 million left under its current share repurchase authorization.
Arch Capital’s earnings surpassed estimates in all the last four quarters, the average beat being 26.83%. The stock has gained 29.3% year to date.
The Zacks Consensus Estimate for ACGL’s 2023 and 2024 earnings indicates a year-over-year increase of 38.2% and 10.4%, respectively. The expected long-term earnings growth is 10%. The consensus estimate for 2023 and 2024 earnings has moved up 2.3% and 2.5%, respectively, in the past 30 days.
Axis Capital delivered a trailing four-quarter average earnings surprise of 9.75%. Year to date, the stock has gained 7.1%.
The Zacks Consensus Estimate for AXS’ 2023 and 2024 earnings indicates a year-over-year increase of 44.8% and 10.7%, respectively. The expected long-term earnings growth is 5%. The consensus estimate for AXS’ 2023 and 2024 earnings has moved up 2.8% and 1.5%, respectively, in the past 30 days.
ProAssurance’s earnings surpassed estimates in two of the last four quarters while missing in the other two. Year to date, the stock has gained 9%.
The Zacks Consensus Estimate for PRA’s 2024 earnings implies a year-over-year rise of 143.5%. The consensus estimate for PRA’s 2023 and 2024 earnings has moved up 25.9% and 2.5%, respectively, in the past 30 days.
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Cboe Global (CBOE) Stock Surges 24% YTD: More Upside Left?
Cboe Global Markets’ (CBOE - Free Report) shares have gained 23.8% year to date, outperforming the industry’s increase of 10.7%. The Finance sector increased 4.4% and the Zacks S&P 500 composite gained 13.9% in the same period. With a market capitalization of $16.4 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 CBOE shares.
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 $7.28, suggesting a year-over-year increase of 5.1% on 9.3% higher revenues of $1.9 billion. The consensus estimate for 2024 earnings is pegged at $7.56, indicating a year-over-year increase 3.8% on 3.6% higher revenues of $2 billion. The expected long-term earnings growth is 6.5%.
CBOE is the largest stock exchange operator by volume in the United States and a leading market globally for ETP trading. CBOE boasts operations in the highest-value markets, given a diversified business mix with recurring revenues, growth acceleration with recurring non-transaction revenues, technology and prudent buyouts.
For the mid-to-long term, CBOE estimates organic top-line compound average growth of 4% to 6%.
A volatile market drives trading volume that in turn fuels top-line growth. 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.
Banking on operational expertise, CBOE increased dividends for 13 straight years. It also buys back share. As of Jun 30, 2023, CBOE had $139.8 million left under its current share repurchase authorization.
Stocks to Consider
Some better-ranked stocks from the same sector are Arch Capital Group (ACGL - Free Report) , Axis Capital Holdings (AXS - Free Report) and ProAssurance (PRA - Free Report) . Each of these companies presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arch Capital’s earnings surpassed estimates in all the last four quarters, the average beat being 26.83%. The stock has gained 29.3% year to date.
The Zacks Consensus Estimate for ACGL’s 2023 and 2024 earnings indicates a year-over-year increase of 38.2% and 10.4%, respectively. The expected long-term earnings growth is 10%. The consensus estimate for 2023 and 2024 earnings has moved up 2.3% and 2.5%, respectively, in the past 30 days.
Axis Capital delivered a trailing four-quarter average earnings surprise of 9.75%. Year to date, the stock has gained 7.1%.
The Zacks Consensus Estimate for AXS’ 2023 and 2024 earnings indicates a year-over-year increase of 44.8% and 10.7%, respectively. The expected long-term earnings growth is 5%. The consensus estimate for AXS’ 2023 and 2024 earnings has moved up 2.8% and 1.5%, respectively, in the past 30 days.
ProAssurance’s earnings surpassed estimates in two of the last four quarters while missing in the other two. Year to date, the stock has gained 9%.
The Zacks Consensus Estimate for PRA’s 2024 earnings implies a year-over-year rise of 143.5%. The consensus estimate for PRA’s 2023 and 2024 earnings has moved up 25.9% and 2.5%, respectively, in the past 30 days.