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CBOE Stock Trades at 24% Discount to 52-Week High: More Upside Left?
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Key Takeaways
CBOE stock trades 24.2% below its 52-week high despite gaining 11.9% year to date.
Robust trading volumes and Data Vantage growth drove a higher 2026 organic revenue growth outlook.
CBOE has raised its dividend for 16 straight years and has $536.8M left under its buyback authorization.
Shares of Cboe Global Markets (CBOE - Free Report) closed at $281.04 on Friday, a 24.2% discount to its 52-week high of $371.18.
CBOE stock has gained 11.9% year to date against the industry’s decrease of 9.4%. The Finance sector has gained 7.2% and the Zacks S&P 500 composite has risen 11.4% in the same time frame.
CBOE vs Industry, Sector, S&P 500
Image Source: Zacks Investment Research
Cboe Global Markets is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. As global capital markets continue to become increasingly electronic and data-driven, CBOE is well-positioned to capitalize on secular trends in trading volumes, demand for market data and the expansion of index-based investing.
Shares of Nasdaq Inc (NDAQ - Free Report) have lost 6.1% year to date, while those of Intercontinental Exchange (ICE - Free Report) have lost 2.8% in the same time frame.
Are CBOE Shares Affordable?
The stock is undervalued compared with its industry. It is currently trading at a forward price-to-earnings multiple of 19.6, lower than the industry average of 21.4 as well as the median of 23.91 over three years.
Image Source: Zacks Investment Research
CBOE is relatively cheap compared to Nasdaq but expensive compared to Intercontinental Exchange.
The Case for CBOE Stock
Cboe Global Markets commands a leading position in U.S. listed options through its ownership of multiple options exchanges, consistently holding the top market share in the industry.
Beyond options, the company has diversified through acquisitions and international expansion, building a portfolio that spans European equities and derivatives exchanges, foreign exchange venues, and clearing infrastructure — reducing dependence on any single asset class or geography. Recurring revenue streams from proprietary market data, index licensing, and technology solutions add further stability during slower trading periods, offering attractive margins and high switching costs for customers.
Robust trading volumes across index options, European equities, and foreign exchange continue to fuel transaction fee growth, while the Data Vantage segment is scaling high-quality recurring revenue. Management raised its 2026 organic total net revenue growth outlook to a low-double-digit to mid-teens range, alongside a higher low-double-digit organic growth target for Data Vantage.
The company is reinforcing its long-term growth trajectory through strategic acquisitions and investments that broaden its global reach, product suite, and capital markets infrastructure — while also pushing into digital assets, carbon markets, and next-generation trading technology, and rolling out new derivatives products to match shifting client needs.
Simultaneously, management is streamlining the portfolio and cost base. The planned divestiture of its Canada exchanges is expected to lower adjusted operating expenses in 2026 and boost overall efficiency. CBOE divested Cboe Australia to TMX Group on July 31, 2026.
Backed by disciplined capital allocation, a solid balance sheet and strong free cash flow, Cboe continues to fund growth investments while rewarding shareholders — having raised its dividend for 16 straight years and holding $536.8 million remaining under its current share repurchase authorization.
Cboe Global’s Growth Projections
The Zacks Consensus Estimate for 2026 revenues indicates a 15.9% year-over-year increase, while that for earnings suggests a 29.2% year-over-year decline. The consensus estimate for 2027 revenues indicates a 2.7% year-over-year increase, while that for earnings suggests an increase of 5.7% year over year.
The expected long-term earnings growth rate is pegged at 18.6%, better than the industry average of 12.5%.
Mixed Analyst Sentiment on CBOE
The consensus estimate for 2026 earnings has moved 1 cent north, while that for 2027 has moved 1 cent south in the past 30 days.
Image Source: Zacks Investment Research
The consensus estimates for 2026 earnings of Nasdaq have witnessed no movement but the same for 2027 moved up a cent in the last 30 days.
The consensus estimate for 2026 and 2027 earnings of Intercontinental Exchange have moved south in the past 30 days.
Parting Thoughts on CBOE Shares
A diversified business mix with recurring revenues, accelerated growth banking on recurring non-transaction revenues, use of technology and prudent buyouts poise CBOE well for growth. Solid growth projections and concerted efforts to continuously enhance shareholders' values instill confidence.
View the Zacks #1 Rank List
Image: Bigstock
CBOE Stock Trades at 24% Discount to 52-Week High: More Upside Left?
Key Takeaways
Shares of Cboe Global Markets (CBOE - Free Report) closed at $281.04 on Friday, a 24.2% discount to its 52-week high of $371.18.
CBOE stock has gained 11.9% year to date against the industry’s decrease of 9.4%. The Finance sector has gained 7.2% and the Zacks S&P 500 composite has risen 11.4% in the same time frame.
CBOE vs Industry, Sector, S&P 500
Image Source: Zacks Investment Research
Cboe Global Markets is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. As global capital markets continue to become increasingly electronic and data-driven, CBOE is well-positioned to capitalize on secular trends in trading volumes, demand for market data and the expansion of index-based investing.
Shares of Nasdaq Inc (NDAQ - Free Report) have lost 6.1% year to date, while those of Intercontinental Exchange (ICE - Free Report) have lost 2.8% in the same time frame.
Are CBOE Shares Affordable?
The stock is undervalued compared with its industry. It is currently trading at a forward price-to-earnings multiple of 19.6, lower than the industry average of 21.4 as well as the median of 23.91 over three years.
Image Source: Zacks Investment Research
CBOE is relatively cheap compared to Nasdaq but expensive compared to Intercontinental Exchange.
The Case for CBOE Stock
Cboe Global Markets commands a leading position in U.S. listed options through its ownership of multiple options exchanges, consistently holding the top market share in the industry.
Beyond options, the company has diversified through acquisitions and international expansion, building a portfolio that spans European equities and derivatives exchanges, foreign exchange venues, and clearing infrastructure — reducing dependence on any single asset class or geography. Recurring revenue streams from proprietary market data, index licensing, and technology solutions add further stability during slower trading periods, offering attractive margins and high switching costs for customers.
Robust trading volumes across index options, European equities, and foreign exchange continue to fuel transaction fee growth, while the Data Vantage segment is scaling high-quality recurring revenue. Management raised its 2026 organic total net revenue growth outlook to a low-double-digit to mid-teens range, alongside a higher low-double-digit organic growth target for Data Vantage.
The company is reinforcing its long-term growth trajectory through strategic acquisitions and investments that broaden its global reach, product suite, and capital markets infrastructure — while also pushing into digital assets, carbon markets, and next-generation trading technology, and rolling out new derivatives products to match shifting client needs.
Simultaneously, management is streamlining the portfolio and cost base. The planned divestiture of its Canada exchanges is expected to lower adjusted operating expenses in 2026 and boost overall efficiency. CBOE divested Cboe Australia to TMX Group on July 31, 2026.
Backed by disciplined capital allocation, a solid balance sheet and strong free cash flow, Cboe continues to fund growth investments while rewarding shareholders — having raised its dividend for 16 straight years and holding $536.8 million remaining under its current share repurchase authorization.
Cboe Global’s Growth Projections
The Zacks Consensus Estimate for 2026 revenues indicates a 15.9% year-over-year increase, while that for earnings suggests a 29.2% year-over-year decline. The consensus estimate for 2027 revenues indicates a 2.7% year-over-year increase, while that for earnings suggests an increase of 5.7% year over year.
The expected long-term earnings growth rate is pegged at 18.6%, better than the industry average of 12.5%.
Mixed Analyst Sentiment on CBOE
The consensus estimate for 2026 earnings has moved 1 cent north, while that for 2027 has moved 1 cent south in the past 30 days.
Image Source: Zacks Investment Research
The consensus estimates for 2026 earnings of Nasdaq have witnessed no movement but the same for 2027 moved up a cent in the last 30 days.
The consensus estimate for 2026 and 2027 earnings of Intercontinental Exchange have moved south in the past 30 days.
Parting Thoughts on CBOE Shares
A diversified business mix with recurring revenues, accelerated growth banking on recurring non-transaction revenues, use of technology and prudent buyouts poise CBOE well for growth. Solid growth projections and concerted efforts to continuously enhance shareholders' values instill confidence.
Given mixed analyst sentiment, it’s better to retain this Zacks Rank #3 (Hold) stock as of now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.