CBOE (CBOE) Moves 6.5% Higher: Will This Strength Last?

Zacks Equity Research
·2-min read

CBOE Global CBOE shares ended the last trading session 6.5% higher at $104.64. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.3% gain over the past four weeks.

The price surge was driven by solid February volumes. Total average daily volumes (ADV) of 13.4 million contracts in February were up 17.4% year over year, driven by solid performance in Options. U.S. Equities Global Forex too increased.

Total contracts for the month were nearly 254.4 million, up 17.4% year over year. Of this, Options improved 19% to 249.3 million. Total volumes of U.S. Equities were 43.8 billion shares, up 53.9% year over year.

Strong volumes reflect compelling product portfolio, solid market position and a global reach with strength in its proprietary products.

Price and Consensus

Price Consensus Chart for CBOE
Price Consensus Chart for CBOE

This holding company for the Chicago Board Options Exchange is expected to post quarterly earnings of $1.30 per share in its upcoming report, which represents a year-over-year change of -21.2%. Revenues are expected to be $330.43 million, down 7.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For CBOE, the consensus EPS estimate for the quarter has been revised 5.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CBOE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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