CBOE Stock Rises 33.3% in a Year: Time to Buy it for Solid Returns?

Cboe Global Markets, Inc. CBOE shares have gained 33.3% in the past year against the industry's decline of 0.9%. The Finance sector has returned 9.7%, and the Zacks S&P 500 composite has appreciated 23.1% in the said time frame.

Cboe Global has outperformed its peers in the past year, including CME Group Inc. CME, Nasdaq, Inc. NDAQ and Intercontinental Exchange Inc. ICE. Shares of CME and NDAQ have gained 17.5% and 14.8%, respectively, while those of ICE have lost 7% in the said time frame.

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With a market capitalization of $30.65 billion, the average volume of shares traded in the last three months was 0.8 million. CBOE has a solid track record of beating earnings estimates in each of the last four quarters, delivering an average surprise of 4.39%.

CBOE Trading Above 50-Day and 200-Day Moving Averages

Shares of Cboe Global closed at $292.89 on Tuesday and are trading above the 50-day and 200-day simple moving averages (SMA) of $278.44 and $251.10, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.

CBOE’s Growth Projection Encourages

The Zacks Consensus Estimate for Cboe Global’s 2026 earnings per share indicates a year-over-year increase of 6.7%. The consensus estimate for revenues is pegged at $2.55 billion, implying a year-over-year improvement of 4.9%.

The consensus estimate for 2027 earnings per share and revenues indicates an increase of 7.4% and 4.4%, respectively, from the corresponding 2026 estimates.

The long-term earnings growth is expected to be 13.8%, better than the industry average of 11.2%. Earnings have grown 14.7% in the past five years, better than the industry average of 10.6%.

Optimistic Analyst Sentiment on CBOE

Six of the 12 analysts covering the stock have raised estimates for 2026 and 2027 over the past 60 days. Thus, the Zacks Consensus Estimate for 2026 and 2027 moved 3% and 3.7% north, respectively, in the last 60 days.

Factors Impacting CBOE

Cboe Global’s organic strength lies in a diversified business mix that ensures uninterrupted revenue generation and recurring non-transaction revenues.

CBOE remains on track to grow its recurring non-transaction revenues. Increases in access and capacity fees and proprietary market data fees are likely to boost Data Vantage’s net revenues. For 2026, Cboe Global expects Data Vantage organic net revenue growth to be in the mid to high single-digit range. The company expects increased capabilities around data, access, and insights and anticipates growth will be aided by greater demand for access across global markets, with the increase of sales presence in new geographies.

The company achieved a greater global breadth of services and products, as well as new distribution channels, apart from generating revenues and cost synergies through strategic buyouts.

Banking on operational expertise, the company has been strengthening its balance sheet by improving its cash position and lowering its debt balance. Its leverage ratio, as well as the times interest earned, compares favorably with the industry average.

CBOE’s strategic investments are well supported by solid capital management. However, higher expenses remain a major concern.
Cboe Global has been facing intense competition due to increased market consolidation that tends to reduce market share, and this includes both product and price competition.

The company’s investment in European, Canadian and Asia Pacific operations remains exposed to volatility in currency exchange rates through translation of net assets or equity to U.S. dollars. The company is also exposed to credit risk from third parties, including customers, counterparties and clearing agents.

End Notes

Cboe Global’s growth strategy of expanding its product line across asset classes, broadening geographic reach, diversifying the business mix with recurring revenues and leveraging technology reflects its operational expertise.

Its wealth distribution remains impressive. CBOE hiked the dividend by 14% in August 2025 to 72 cents per share, marking the 15th consecutive year of dividend hike. As of Dec. 31, 2025, the company had $614.5 million of availability remaining under its existing share repurchase authorizations. The company remains well-positioned to invest in business, support dividends and opportunistically repurchase shares given continued strong free cash flow generation.

Coupled with optimistic analyst sentiment and favorable growth estimates, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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