Core Insights - Wall Street experienced a significant decline on November 6, 2025, primarily due to a sell-off in technology stocks and concerns regarding the ongoing U.S. government shutdown, which is the largest in history [1][9] Investment Strategy - Equity investors are advised to focus on dividend growth stocks rather than high price-yielding stocks, as companies with a history of raising dividends typically demonstrate strong financial health, providing a defensive hedge against economic uncertainty [2][4] - Stocks with a strong history of year-over-year dividend growth are considered to form a healthier portfolio with greater potential for capital appreciation compared to simple dividend-paying stocks [3][6] Selected Dividend Growth Stocks - Five dividend growth stocks identified as solid investment choices include: - **Vertiv (VRT)**: Expected revenue growth of 27.5% year-over-year for 2025, long-term earnings growth rate of 30%, and an annual dividend yield of 0.08% [10][11] - **Tapestry Inc. (TPR)**: Projected revenue growth of 3.20% for fiscal 2026, long-term earnings growth rate of 7.60%, and an annual dividend yield of 1.46% [11] - **HCA Healthcare (HCA)**: Anticipated revenue growth of 7.4% for 2025, long-term earnings growth rate of 12.3%, and an annual dividend yield of 0.61% [12] - **Lam Research (LRCX)**: Expected revenue growth of 12.7% for fiscal 2026, long-term earnings growth rate of 20.3%, and an annual dividend yield of 0.63% [13] - **CBOE Global Markets (CBOE)**: Projected revenue growth of 13.2% for 2025, long-term earnings growth rate of 16.3%, and an annual dividend yield of 1.15% [14] Investment Criteria - Stocks selected for their strong fundamentals include criteria such as: - 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [6] - 5-Year Historical Sales Growth greater than zero, reflecting strong revenue growth [7] - 5-Year Historical EPS Growth greater than zero, indicating solid earnings growth [7] - Next 3-5 Year EPS Growth Rate greater than zero, suggesting expected earnings growth to sustain dividend payments [7] - Price/Cash Flow less than the industry average, indicating undervaluation [8] - 52-Week Price Change greater than the S&P 500, ensuring stock appreciation [8] - Top Zacks Rank of 1 (Strong Buy) or 2 (Buy), indicating potential outperformance [8][10]

Group 1: Roku, Inc. (ROKU) - Roku has a Zacks Rank 1 and its current year earnings estimate increased by 83.3% over the last 60 days [1] - Roku's shares rose by 27.2% over the last three months, outperforming the S&P 500's increase of 6.8% [1] - The company has a Momentum Score of A [1] Group 2: Fox Corporation (FOXA) - Fox Corporation holds a Zacks Rank 1 with a 5.6% increase in its current year earnings estimate over the last 60 days [2] - Fox's shares gained 20.3% in the last three months, also surpassing the S&P 500's 6.8% increase [2] - The company has a Momentum Score of B [2] Group 3: Cboe Global Markets, Inc. (CBOE) - Cboe Global Markets has a Zacks Rank 1 and its current year earnings estimate increased by nearly 5% over the last 60 days [3] - Cboe's shares increased by 4.4% over the past month, compared to the S&P 500's 0.8% rise [3] - The company possesses a Momentum Score of A [3]

Core Insights - Cboe Global Markets reported record trading volumes in October 2025, with an average daily volume (ADV) of 21.4 million contracts across its four options exchanges, driven by significant increases in multi-listed options and proprietary index options [5]. Trading Volume Statistics - Multi-listed options reached an ADV of 15.9 million contracts, a 47.2% increase year-over-year from October 2024 [3]. - Index options saw an ADV of 5.5 million contracts, marking a 38.6% increase compared to September 2025 [3]. - U.S. equities matched shares on-exchange totaled 2,020 million, reflecting a 56.7% increase from the previous year [3]. - Off-exchange U.S. equities matched shares reached 227 million, a substantial 195.0% increase year-over-year [3]. - Canadian equities matched shares totaled 211,986 thousand, a 33.6% increase from October 2024 [3]. - European equities matched shares were reported at 13,192 million, a 25.2% increase compared to the previous year [3]. - Global FX trading volume was $55,134 million, a 24.3% increase from October 2024 [3]. Notable Records - Trading in S&P 500 Index (SPX) options set multiple records, including a new monthly ADV record of 4.4 million contracts and a single-day record of 6.4 million contracts on October 10 [5]. - The zero-days-to-expiry (0DTE) options also set a monthly ADV record of 2.7 million contracts [5]. Cboe's Business Overview - Cboe Global Markets operates as a leading derivatives and securities exchange network, providing trading solutions across various asset classes including equities, derivatives, and FX in North America, Europe, and Asia Pacific [5].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those with genuine growth potential can be challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - CBOE Global (CBOE) is currently highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects [4] - CBOE's historical EPS growth rate is 14.2%, with projected EPS growth of 15.6% this year, surpassing the industry average of 12.1% [5] Group 3: Asset Utilization - The asset utilization ratio (sales-to-total-assets ratio) is an important metric for growth stocks, indicating efficiency in generating sales [6] - CBOE has an S/TA ratio of 0.53, significantly higher than the industry average of 0.25, indicating better asset utilization [6] Group 4: Sales Growth - CBOE is also attractive in terms of sales growth, with expected sales growth of 11.3% this year compared to the industry average of 6.5% [7] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - CBOE's current-year earnings estimates have been revised upward, with a 2.9% increase in the Zacks Consensus Estimate over the past month [9] Group 6: Overall Positioning - CBOE has achieved a Growth Score of A and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [11]

Core Insights - CBOE Global reported a revenue of $605.5 million for the quarter ended September 2025, reflecting a year-over-year increase of 13.8% and surpassing the Zacks Consensus Estimate by 2.14% [1] - The earnings per share (EPS) for the quarter was $2.67, up from $2.22 in the same quarter last year, resulting in an EPS surprise of 5.53% over the consensus estimate of $2.53 [1] Financial Performance Metrics - Average Daily Volume for Index options was 4.86 million, slightly above the analyst estimate of 4.8 million [4] - Average Revenue Per Contract for Futures was $1.75, slightly below the estimate of $1.76 [4] - Average Daily Volume for Options was 18.78 million, exceeding the estimate of 18.12 million [4] - Average Daily Volume for Multi-listed options was 13.91 million, above the estimate of 13.32 million [4] - Total revenues from Access and capacity fees were $103.9 million, surpassing the estimate of $101.69 million [4] - Market data fees totaled $83.7 million, exceeding the average estimate of $81.17 million [4] - Net transaction and clearing fees generated $446.6 million, representing a 14.3% year-over-year increase and exceeding the estimate of $435.53 million [4] - Futures transaction and clearing fees were $23.8 million, below the estimate of $29.67 million, reflecting a year-over-year decline of 24.9% [4] - Global FX transaction and clearing fees were $19.6 million, above the estimate of $18.8 million, marking a year-over-year increase of 12.6% [4] - Total regulatory fees were $11.8 million, significantly below the estimate of $115.14 million [4] - Total transaction and clearing fees reached $919.9 million, exceeding the estimate of $785.52 million [4] - Net transaction and clearing fees for Global FX were $19.1 million, slightly above the estimate of $18.53 million [4] Stock Performance - CBOE shares have returned -1.9% over the past month, while the Zacks S&P 500 composite has increased by 2.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Cboe Global Markets, Inc. (CBOE) reported third-quarter 2025 adjusted earnings of $2.67 per share, exceeding the Zacks Consensus Estimate by 5.5% and reflecting a 20% year-over-year increase [1][8] - The company achieved record total adjusted revenues of $605.5 million, a 14% year-over-year increase, driven by strong performance in derivatives markets, Data Vantage, and cash and spot markets [2][8] Operational Details - Options revenues increased by 19% year over year to $380.8 million, attributed to growth in market data, access and capacity fees, and higher net transaction and clearing fees due to increased average daily volume [2] - North American Equities revenues rose 6% year over year to $103.5 million, while Europe and Asia Pacific revenues surged 24% to $69.1 million [3] - Futures net revenues decreased by 22% year over year to $29.6 million, primarily due to lower net transaction and clearing fees [3] - Global FX net revenues increased by 13% year over year to $22.5 million, driven by higher net transaction and clearing fees [4] Financial Update - CBOE exited the third quarter with cash and cash equivalents of $1.5 billion, a 62.6% increase from the end of 2024 [6] - Total assets rose 16.4% year over year to $9.1 billion, while total shareholders' equity increased by 14.1% to $4.9 billion [6] Share Repurchase and Dividend Update - In Q3, CBOE paid out cash dividends totaling $75.7 million, or 72 cents per share, and had approximately $614.5 million remaining under its existing share repurchase authorizations [9] Guidance Update - CBOE expects organic total net revenue growth in the low double-digit to mid-teens range for 2025, an increase from previous guidance of high single-digit growth [10] - Adjusted operating expenses are anticipated to be between $827 million and $842 million for 2025, down from earlier guidance [11] - Capital expenditures are projected to be in the range of $73 million to $83 million for 2025, also a reduction from previous estimates [12]

Core Insights - CBOE Global reported quarterly earnings of $2.67 per share, exceeding the Zacks Consensus Estimate of $2.53 per share, and up from $2.22 per share a year ago [1] - The company achieved revenues of $605.5 million for the quarter, surpassing the Zacks Consensus Estimate by 2.14%, compared to $532 million in the same quarter last year [3] Earnings Performance - The earnings surprise for the quarter was +5.53%, with the company having surpassed consensus EPS estimates three times over the last four quarters [2] - CBOE's earnings for the previous quarter were $2.46 per share, against an expectation of $2.42, resulting in a surprise of +1.65% [2] Stock Performance - CBOE shares have increased approximately 21.2% since the beginning of the year, outperforming the S&P 500's gain of 16% [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.35 on revenues of $572.14 million, and for the current fiscal year, it is $9.84 on revenues of $2.3 billion [8] - The Zacks Industry Rank places the Securities and Exchanges sector in the top 18% of over 250 Zacks industries, suggesting a favorable outlook for the industry [9]

Financial Performance - Total revenues for the three months ended September 30, 2025, increased to $1,141.7 million, up from $1,055.7 million in the same period of 2024, representing a growth of 8.1%[22] - Net income for the three months ended September 30, 2025, was $300.8 million, compared to $218.5 million for the same period in 2024, reflecting a year-over-year increase of 37.6%[22] - Operating income for the nine months ended September 30, 2025, reached $1,063.3 million, a significant increase from $799.9 million in the same period of 2024, marking a growth of 32.9%[22] - Comprehensive income for the nine months ended September 30, 2025, was $859.5 million, compared to $595.6 million for the same period in 2024, reflecting a year-over-year increase of 44.4%[24] - Net income for the nine months ended September 30, 2025, was $786.5 million, a 38.5% increase from $568.4 million in the same period of 2024[32] Cash and Assets - Cash and cash equivalents as of September 30, 2025, were $1,496.7 million, up from $920.3 million at December 31, 2024, indicating a substantial increase of 62.6%[20] - Total assets increased to $9,068.6 million as of September 30, 2025, compared to $7,789.1 million at December 31, 2024, reflecting a growth of 16.4%[20] - The company’s total current assets increased to $3,742.0 million as of September 30, 2025, compared to $2,479.1 million at December 31, 2024, indicating a growth of 50.9%[20] - Total cash, cash equivalents, and restricted cash and cash equivalents at the end of the period was $3,170.0 million, compared to $2,802.2 million at the end of the previous year[32] Liabilities and Equity - Total liabilities as of September 30, 2025, were $4,183.7 million, up from $3,509.5 million at December 31, 2024, representing an increase of 19.2%[20] - As of September 30, 2025, total stockholders' equity increased to $4,884.9 million, up from $4,279.6 million at the end of 2024, reflecting a growth of approximately 14.1%[27] - The company’s retained earnings increased to $3,394.1 million as of September 30, 2025, compared to $2,815.9 million at December 31, 2024, a growth of 20.5%[20] Revenue Streams - Transaction and clearing fees for the three months ended September 30, 2025, amounted to $919.9 million, up from $725.9 million in the prior year, indicating a growth of about 26.7%[55] - Access and capacity fees increased to $103.9 million in Q3 2025 from $94.2 million in Q3 2024, reflecting a growth of approximately 10.0%[55] - Market data fees for the three months ended September 30, 2025, totaled $83.7 million, compared to $73.5 million in the same quarter of 2024, marking a year-over-year increase of about 13.5%[55] - For the nine months ended September 30, 2025, transaction and clearing fees totaled $2,620.2 million, compared to $2,142.0 million in the same period of 2024, reflecting an increase of 22.3%[58] Expenses and Costs - The cost of revenues for the three months ended September 30, 2025, was $536.2 million, compared to $523.7 million in the same period of 2024, a slight increase of 2.4%[169] - Depreciation and amortization expenses for the three months ended September 30, 2025, totaled $30.9 million, compared to $31.8 million in the same period of 2024, a decrease of 2.8%[169] - Other segment operating expenses for the three months ended September 30, 2025, were $204.3 million, compared to $192.8 million in the same period of 2024, an increase of 5.7%[169] Shareholder Returns - Cash dividends on common stock increased to $0.72 per share in the third quarter of 2025, up from $0.63 per share in the previous quarter, marking a 14.3% increase[27] - The aggregate cash dividend payout for the nine months ended September 30, 2025, is not specified but follows the trend of increased dividends[210] - The Company expects to continue paying dividends, subject to the discretion of its Board of Directors and various financial considerations[211] Regulatory and Compliance - Cboe Trading and BIDS Trading were required to maintain net capital of at least $0.1 million as of September 30, 2025, under SEC regulations[178] - Cboe Clear Europe must maintain a minimum amount of capital as per EMIR regulations to cover operational and market risks[181] - The company is in compliance with financial covenants, maintaining a minimum consolidated interest coverage ratio of not less than 4.00 to 1.00 as of September 30, 2025[110] Stock and Equity Transactions - The Company repurchased 21,063,700 shares of common stock at an average cost of $80.02 per share, totaling $1.7 billion since the inception of the share repurchase program[206] - The Company purchased 95,036 shares of common stock totaling $20.5 million to satisfy tax obligations upon the vesting of restricted stock during the nine months ended September 30, 2025[196] - The total unrecognized compensation costs related to restricted stock, RSUs, and PSUs as of September 30, 2025, amounted to $77.5 million, expected to be recognized over a weighted average period of 2.0 years[200]

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Financial Performance - Cboe reported record quarterly net revenue of $605.5 million, a 14% increase year-over-year[3] - Total revenues for Q3 2025 reached $1,141.7 million, a 8.1% increase from $1,055.7 million in Q3 2024[41] - Net income for Q3 2025 was $300.8 million, up 37.8% from $218.5 million in Q3 2024[41] - Operating income increased to $370.3 million in Q3 2025, compared to $307.4 million in Q3 2024, reflecting a 20.5% growth[41] - Basic earnings per share for Q3 2025 were $2.86, a 37.5% increase from $2.08 in Q3 2024[41] - Adjusted diluted earnings per share (EPS) for Q3 2025 was $2.67, compared to $2.22 in Q3 2024, reflecting a 20.3% increase[48] - Adjusted earnings for the nine months ended September 30, 2025, reached $800.7 million, a 16.6% increase compared to $686.8 million in the same period of 2024[48] Revenue Breakdown - Derivatives net revenue rose 15% year-over-year, driven by multiple volume records in the options business[4] - Cash and Spot Markets net revenue grew 14% year-over-year, while Data Vantage net revenue increased by 12%[4] - Global FX net revenue increased 13% to $22.5 million, with an average daily notional value traded of $49.9 billion, up 3% year-over-year[13] - Record Options net revenue reached $380.8 million, an increase of $59.9 million, or 19 percent, from Q3 2024, driven by a 26 percent rise in total options average daily volume (ADV)[14] - N.A. Equities net revenue was $103.5 million, a 6 percent increase from Q3 2024, despite a 3 percent decline in net transaction and clearing fees[14] - Europe and APAC net revenue increased by $13.5 million, or 24 percent, to $69.1 million from Q3 2024, with European Equities average daily notional value (ADNV) traded at €11.7 billion, up 26 percent[14] Guidance and Projections - The company is increasing its 2025 organic total net revenue growth guidance to 'low double-digit to mid-teens' from 'high single-digit'[5] - Organic total net revenue growth is projected to be in the 'low double-digit to mid-teens' range for 2025, an increase from previous guidance of 'high single-digit'[20] - Adjusted operating expenses are expected to be between $827 million and $842 million in 2025, down from prior guidance of $832 million to $847 million[20] Expenses and Liabilities - Total operating expenses for Q3 2025 were $235.2 million, a 5% increase from Q3 2024[10] - The annualized run-rate impact of business review decisions is estimated to result in a 3% reduction in net revenue and an 8-10% reduction in adjusted operating expenses[8] - The company’s total liabilities increased to $4,183.7 million as of September 30, 2025, compared to $3,509.5 million at December 31, 2024, a 19.2% increase[42] Cash and Dividends - As of September 30, 2025, the company had cash and cash equivalents of $1,496.7 million and total debt of $1,442.4 million[17] - The company paid cash dividends of $75.7 million, or $0.72 per share, with approximately $614.5 million remaining under its share repurchase authorizations[17] - Cash and cash equivalents rose to $1,496.7 million as of September 30, 2025, compared to $920.3 million at December 31, 2024, marking a 62.5% increase[42] Market Share and Volume - Cboe's Options exchanges achieved a total market share of 30.9 percent in Q3 2025, up from 30.5 percent in Q3 2024[14] - Total industry average daily volume (ADV) for options reached 60,798 thousand in Q3 2025, up from 57,203 thousand in Q2 2025, representing a 4.0% increase[31] - The company's total options ADV was 18,775 thousand in Q3 2025, compared to 17,301 thousand in Q2 2025, reflecting an 8.5% growth[31] - The market share for total options increased to 30.9% in Q3 2025 from 30.2% in Q2 2025[31] - U.S. equities exchange market share decreased to 9.8% in Q3 2025 from 10.5% in Q2 2025[31] Tax and Adjustments - The effective tax rate on adjusted earnings for the full year 2025 is expected to be in the range of 28.5 to 30.5 percent[20] - Income tax expense for Q3 2025 was $129.3 million, an increase from $90.5 million in Q3 2024[48] - The company reported an adjusted income tax rate of 30.4% for Q3 2025, compared to 29.2% in Q3 2024[48] Other Financial Metrics - Adjusted operating margin for Q3 2025 was 65.3%, up from 61.7% in Q3 2024[48] - The Operating EBITDA margin improved to 67.5% in Q3 2025, compared to 63.7% in Q3 2024[53] - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,181.4 million, compared to $1,020.0 million in the same period of 2024, indicating a 15.8% rise[53] - The EBITDA margin for the nine months ended September 30, 2025, was 68.7%, up from 59.5% in the same period of 2024[53]