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Chicago, Illinois-based Cboe Global Markets, Inc. (CBOE) operates as an exchange holding company. Valued at $22.2 billion by market cap, the company operates a financial options trading platform that provides cutting-edge trading and investment solutions, including equities, foreign exchange, indices, data and analytics, and trade reporting solutions.
Shares of this leading provider of market infrastructure and tradable products have outperformed the broader market over the past year. CBOE has gained 37.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.1%. However, in 2024, CBOE’s stock rose 17.1%, compared to SPX’s 17.2% rise on a YTD basis.
Zooming in further, CBOE also outperformed the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). The exchange-traded fund has gained about 34% over the past year and returned 16.2% on a YTD basis.
CBOE’s solid price performance can be attributed to higher trading volumes in index options, increased revenue from transaction and clearing fees, and growth in market data and access fees.
On Aug. 2, CBOE shares closed up more than 4% after reporting its Q2 earnings results. Its adjusted EPS increased 20.8% year over year to $2.15. Its revenue stood at $513.8 million, up 10%. The company reaffirmed fiscal 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% and 8%.
For the current fiscal year, ending in December, analysts expect Cboe Global Markets’ EPS to grow 10.6% to $8.63 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters. Moreover, the company surpassed its consensus EPS estimate by 1.9% in the previous quarter.
Among the 16 analysts covering CBOE stock, the consensus is a “Moderate Buy.” That’s based on five “Strong Buy” ratings and 11 “Holds.”
With no “Strong Sell” ratings, this configuration appears more bullish than it did just a month ago.
On Aug. 5, Piper Sandler Companies (PIPR) analyst Patrick Moley reiterated a “Buy” rating on CBOE with a price target of $210.
While CBOE currently trades above its mean price target of $200.20, the Street-high price target of $230 suggests an upside potential of 10%.
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.
