CBOE Global (CBOE) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings ...

Chicago, Illinois-based Cboe Global Markets, Inc. (CBOE) operates as one of the largest stock exchange operators by volume in the U.S. and a leading market globally for ETP trading. With a market cap of $24.8 billion, the company operates through Options, North American Equities, Europe and Asia Pacific, Futures, Global FX, and Digital segments. The financial sector giant is gearing up to announce its third-quarter results before the markets open on Friday, Oct. 31. Ahead of the event, analysts expect Cbo ...

Core Insights - The SIBO volatility index has decreased to its lowest level in nearly two weeks, indicating a calm surface in the market, but underlying issues may still exist [1] - Individual stock volatility is significantly higher than the index level, suggesting that while the overall market appears stable, specific stocks are experiencing substantial fluctuations [2][4] Volatility Measures - The VIX EQ index, which measures single stock volatility, has recently reached an all-time high, indicating increased anxiety around earnings and valuations, particularly for high-profile tech stocks [3][4] - The widening spread between VIX EQ and VIX typically occurs before earnings announcements, reflecting heightened expectations for stock movements [3] Market Dynamics - The current market environment shows a notable dispersion in stock performance, with large-cap stocks like Apple and Amazon experiencing greater volatility compared to smaller stocks [5] - Despite significant individual stock volatility, the overall index volatility remains muted due to the uncorrelated movements of different sectors [5][6] Investor Sentiment - There has been a noticeable increase in hedging demand among investors, particularly as they seek downside protection and aim to lock in year-to-date gains [9] - The options market is reflecting a low level of volatility, leading to cheaper premiums for both call and put options, which may encourage increased trading activity [16] Bond Market Observations - The bond market has shown a decline in yields while inflation expectations are rising, suggesting that the Federal Reserve may prioritize labor market conditions over inflation risks [12] - This easing of financial conditions has contributed to positive performance across various asset classes [13] Future Outlook - The upcoming earnings season and potential interest rate cuts by the Federal Reserve are expected to influence market volatility, with options pricing indicating a 3% potential move in either direction for the S&P 500 ETF [14][15] - Investors are currently assessing the low levels of volatility as an opportunity to hedge against potential market shifts [17]

Core Points - Cboe Global Markets has declared a quarterly cash dividend of $0.72 per share for the fourth quarter of 2025, payable on December 15, 2025, to stockholders of record as of November 28, 2025 [1] Company Overview - Cboe Global Markets is recognized as the world's leading derivatives and securities exchange network, providing advanced trading, clearing, and investment solutions globally [2] - The company offers trading solutions across multiple asset classes, including equities, derivatives, and foreign exchange, in regions such as North America, Europe, and Asia Pacific [2] - Cboe is dedicated to creating a trusted and inclusive global marketplace that supports sustainable financial futures for its users [2]

Core Viewpoint - Cboe Global Markets is seeking to extend options trading hours, moving towards "overnight trading" in the U.S. market [1] Group 1: Proposed Changes - The company has proposed to add trading hours outside of the regular trading session, specifically from 7:30 AM to 9:25 AM and from 4:00 PM to 4:15 PM [1] - This extension aims to align with overseas demand and is part of a broader trend among U.S. exchanges to lengthen trading hours [1] Group 2: Implementation Details - The proposed changes will only apply to certain categories of stock options, depending on trading volume, market capitalization, and trading activity [1] - The expansion will be limited to specific contracts and will be tested in a small-scale pilot before broader implementation [1]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to associated risks and volatility [1] Group 1: Company Overview - CBOE Global (CBOE) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - CBOE holds a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - CBOE has a historical EPS growth rate of 13.9%, with projected EPS growth of 13.1% for the current year, surpassing the industry average of 10.1% [4] Group 3: Asset Utilization - CBOE's asset utilization ratio is 0.53, indicating that the company generates $0.53 in sales for every dollar in assets, significantly higher than the industry average of 0.24 [5] Group 4: Sales Growth - The company's sales are expected to grow by 10.5% this year, compared to the industry average of 6.6%, highlighting its strong sales growth potential [6] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for CBOE have been revised upward, with the Zacks Consensus Estimate increasing by 1.2% over the past month, indicating positive momentum [8][10] Group 6: Investment Positioning - CBOE's combination of a Zacks Rank 2 and a Growth Score of A positions it well for outperformance, making it an attractive option for growth investors [10]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding in stock selection [3][4] Zacks Style Scores - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score identifies undervalued stocks using financial ratios [4] - Growth Score emphasizes a company's financial health and future growth potential [5] - Momentum Score tracks price trends to capitalize on stock price movements [6] - VGM Score combines all three styles to provide a comprehensive stock rating [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.81% since 1988 [8] - There are over 800 stocks rated 1 or 2, making it essential to utilize Style Scores for better stock selection [9] Stock Example: Cboe Global Markets - Cboe Global Markets, a major stock exchange operator, holds a 3 (Hold) Zacks Rank and has a VGM Score of A [12] - The company is projected to achieve year-over-year earnings growth of 12.3% for the current fiscal year, with upward revisions in earnings estimates [13] - Cboe's average earnings surprise stands at +1.9%, making it a strong candidate for growth investors [13]

Core Insights - Cboe Global Markets reported record-breaking options trading activity in September and Q3 2025, driven by strong investor engagement and growth in proprietary index products [3][4][12] Trading Volume Highlights - Total U.S. options volume reached an average daily volume (ADV) of 20.5 million contracts in September and 18.8 million in Q3, both setting new records [7] - Index options volume achieved a new quarterly ADV record of 4.9 million contracts, with an all-time high of 4.3 million SPX options contracts in September [7] - Mini-SPX options recorded a quarterly ADV of 119,000 contracts, indicating increased adoption among institutional and retail investors [7] Global Trading Performance - Cboe's international businesses experienced double-digit growth in equities and FX trading volumes across multiple regions [5] - European equities trading volume rose 16.5% year-over-year to €11.8 billion in matched notional value for September [8] - Canadian equities increased by 29.6% year-over-year, totaling nearly 193 billion matched shares [8] - Australian equities advanced 17.3% year-over-year to AUD 1.05 billion [8] - Global FX volumes increased by 9% year-over-year, totaling $52.4 billion in average daily volume [8] RPC and Net Revenue Capture Guidance - Preliminary guidance for Q3 2025 average revenue per contract (RPC) and net revenue capture was provided, reflecting three-month rolling averages [6] - RPC values are influenced by exchange fee structures, transaction mix, and volume-based discounts, serving as a measure of pricing efficiency [10] Market Context and Outlook - Strong market engagement and volatility supported record-breaking derivatives volumes, with the integration of digital futures contributing to growth momentum [11] - Cboe's global expansion and ongoing investment in technology, clearing, and data services are central to its diversified revenue model [12]

Core Insights - The article discusses the evolution and significance of exchanges in the financial marketplace, highlighting their network effects and the value they create through increased trading activity [2][4][5]. Group 1: Historical Context and Market Dynamics - The New York Stock Exchange (NYSE) was founded in 1792, and over time, entry into this marketplace became increasingly expensive, with memberships selling for over $6 million in inflation-adjusted dollars by the 1990s [1]. - Exchanges benefit from network effects, where increased participation leads to more trading activity, enhancing liquidity and attracting more traders [2][3]. Group 2: Key Exchange Players - CME Group Inc. (CME) is a leader in futures trading, holding over 95% market share in U.S. interest rate futures and issuing all futures contracts on major indexes like the S&P 500 [8]. - Cboe Global Markets Inc. (CBOE) has established a dominant position in index options, maintaining a 99% market share, and has seen a 24% return since being recommended as a top cyclical stock [12][13]. - Robinhood Markets Inc. (HOOD) has capitalized on the meme stock phenomenon and is now exploring opportunities in prediction markets, which analysts expect to grow 28% annually through 2030 [15][17]. Group 3: Investment Opportunities - CME shares rose as much as 25% following a selloff, indicating a favorable buying opportunity for investors looking to capitalize on volatility [9][10]. - Cboe's revenue growth accelerated from 5% to 14%, driven by rising volatility and increased popularity of zero-day-to-expiry options, suggesting continued upward momentum for the stock [13][14]. - Robinhood's expansion into prediction markets could lead to significant growth, especially as it positions itself ahead of competitors in a nascent market [16][19]. Group 4: Emerging Markets - A potential $4 trillion trading market is emerging, linked to President Trump's Executive Order 14178, which could revolutionize global financial markets [21][22].

Core Insights - Cboe Global Markets, Inc. reported September trading volume statistics and provided guidance for revenue per contract/net revenue capture metrics for Q3 2025 [1] Trading Volume Statistics - The report includes an overview of September trading statistics and market share by business segment [1] - Specific volume data in select index products is highlighted [1] Revenue Metrics - The report details RPC/net revenue capture, which is reported on a one-month lag across business lines [1]