What Makes CBOE (CBOE) a New Buy Stock

Core Viewpoint - CBOE Global (CBOE) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - For CBOE, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices as investors respond positively to this trend [5][8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of performance, where Zacks Rank 1 stocks have averaged a +25% annual return since 1988 [7]. - CBOE's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Earnings Estimate Details - For the fiscal year ending December 2025, CBOE is expected to earn $9.19 per share, reflecting a 6.7% increase from the previous year, with a 2% rise in the Zacks Consensus Estimate over the past three months [8].