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Chicago, Illinois-based Cboe Global Markets, Inc. (CBOE) operates as an exchange holding company. Valued at $22 billion by market cap, the company operates a financial options trading platform that provides cutting-edge trading and investment solutions, including equities, foreign exchange, indices, data and analytics, and trade reporting solutions.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and CBOE perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the financial data & stock exchanges industry.
CBOE's diversified trading solutions across equities, derivatives, FX, and digital assets drive its market strength. Its revenue streams are well-balanced, with significant contributions from cash markets, data solutions, and derivatives, which diversification mitigates risk and positions the company to capitalize on various market dynamics.
CBOE shares have slipped 4.3% from their 52-week high of $216.14, achieved on Aug. 27. Over the past three months, CBOE stock has gained 20.7%, outperforming the Financial Select Sector SPDR Fund’s (XLF) 8.3% gains during the same time frame.
In the longer term, shares of CBOE rose 15.8% on a YTD basis and climbed 31.6% over the past 52 weeks, underperforming XLF’s YTD gains of 19.8% and 33.9% returns over the last year.
Despite weak price momentum in the long term, CBOE has been trading above its 50-day and 200-day moving averages since mid-July, indicating a bullish trend.
On Aug. 2, CBOE shares closed up more than 4% after reporting its Q2 results. Its adjusted EPS increased 20.8% year over year to $2.15. Its revenue stood at $513.8 million, up 10% year over year. The company reaffirmed its 2024 guidance and expects its adjusted operating expense to be between $795 and $805 million and organic total net revenue growth to be between 6% to 8%.
CBOE’s rival, CME Group Inc. (CME), has lagged behind the stock with a 3.6% uptick on a YTD basis and gained 8.2% over the past 52 weeks.
Wall Street analysts are moderately bullish on CBOE’s prospects. The stock has a consensus “Moderate Buy” rating from the 14 analysts covering it. While CBOE currently trades above its mean price target of $200.20, the Street-high price target of $230 suggests an upside potential of 11.3%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
