Should CBOE Stock Be in Your Portfolio Ahead of Q2 Earnings?

The consensus estimate for earnings is pegged at $3.45 per share. The Zacks Consensus Estimate for CBOE’s second-quarter earnings has moved 5.8% north in the past 30 days. The estimate suggests a year-over-year decrease of 40.2%. 

Image Source: Zacks Investment Research

CBOE’s Solid Earnings Surprise History

CBOE’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.35%.

What the Zacks Model Unveils for Cboe Global

Our proven model predicts an earnings beat for CBOE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is the case here, as you can see below.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: CBOE has an Earnings ESP of +0.77%. This is because the Most Accurate Estimate of $3.48 is pegged higher than the Zacks Consensus Estimate of $3.45.

Zacks Rank: CBOE currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Shape CBOE’s Q2 Results

Solid growth in index options, along with higher transaction and clearing fees, access and capacity charges, market data revenues and regulatory fees, is likely to support Cboe Global Markets’ second-quarter results.

Derivatives Markets revenues are expected to have benefited from increased transaction and clearing fees, driven by stronger trading volumes across Cboe’s options exchanges. Its performance is likely to have received additional support from robust activity in proprietary products, including VIX futures and VIX and SPX options, as well as healthy growth in multi-listed options trading. However, lower regulatory fees may have partially offset these gains.

Cboe Data Vantage revenues are likely to have improved on higher access and capacity fees and proprietary market data revenues. Increased customer demand for logical and physical ports across the Options, North American Equities, and Europe and Asia Pacific segments is likely to have boosted connectivity-related revenues. Market data fees are also expected to have benefited from solid demand across these businesses.

Net transaction and clearing fees are likely to have gained from higher Cboe European Equities matched average daily notional value, Global FX average daily notional value and Cboe Clear Europe net settlement volumes. 

Continued share repurchases are also expected to have supported second-quarter earnings per share.

CBOE’s Price Performance & Valuation

The stock has outperformed the industry, but underperformed its sector and the S&P 500 in the second quarter of 2026. 

Image Source: Zacks Investment Research

The stock is trading at a forward 12-month price-to-earnings value of 21.27X, higher than the industry average of 20.54. CBOE is cheap compared to Nasdaq NDAQ but expensive compared to Intercontinental Exchange ICE.

Image Source: Zacks Investment Research

Investment Thesis

Cboe Global Markets holds a dominant position in the U.S. listed options market through its ownership of multiple options exchanges, consistently maintaining the industry's leading market share.

The company has also built a diversified business through acquisitions and international expansion. Cboe Global is further strengthening its long-term growth profile through strategic acquisitions and investments that expand its global footprint, product portfolio and capital markets infrastructure. The company is also investing in digital assets, carbon markets and next-generation trading technologies while introducing innovative derivatives products to meet evolving client demand.

At the same time, management is optimizing its portfolio and cost structure. The company has agreed to divest its Canada and Australia exchanges and expects these actions to reduce adjusted operating expenses in 2026, improving overall efficiency.

The company's disciplined capital allocation supports strategic investments while maintaining a strong balance sheet and robust free cash flow generation.

How to Play CBOE Stock

A diversified business mix with recurring revenues, accelerated growth banking on recurring non-transaction revenues, use of technology and prudent buyouts poise CBOE well for growth. Its VGM Score of A instills confidence. 

Given affordable valuation, solid growth projections and optimistic analyst sentiment, it’s time to add this stock to one’s portfolio.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research