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Cboe Global Markets, Inc. (CBOE), headquartered in Chicago, Illinois, is a global exchange operating company. Valued at $22 billion by market cap, the company operates a financial options trading platform that provides cutting-edge trading and investment solutions including equities, foreign exchange, indices, data and analytics, and trade reporting solutions.
Shares of the world's leading derivatives and securities exchange network have underperformed the broader market over the past year. CBOE has gained 12.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.8%. However, in 2025, CBOE stock is up 7.6%, surpassing SPX’s 4.5% rise on a YTD basis.
Narrowing the focus, CBOE’s underperformance is also apparent compared to iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI). The exchange-traded fund has gained about 47.6% over the past year. Moreover, the ETF’s 10.4% gains on a YTD basis outshine the stock’s returns over the same time frame.
CBOE's underperformance stems from rising expenses offsetting growth in operating income, amidst concerns over extended trading hours, including strained market liquidity, regulatory oversight challenges, and operational difficulties. Additionally, the company faces intense competition, exposure to currency exchange rate volatility and credit risk, and muted analyst sentiments, all contributing to its share price underperformance and posing significant challenges.
On Feb. 7, CBOE shares closed up more than 2% after reporting its Q4 results. Its adjusted EPS of $2.10 missed Wall Street expectations of $2.13. The company’s revenue was $524.5 million, missing Wall Street forecasts of $525 million.
For fiscal 2025, ending in December, analysts expect CBOE’s EPS to grow 4.1% to $8.96 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
Among the 18 analysts covering CBOE stock, the consensus is a “Hold.” That’s based on four “Strong Buy” ratings, 11 “Holds,” and three “Strong Sells.”
This configuration is less bullish than two months ago, with its overall rating of “Moderate Buy.”
On Feb. 11, Keefe Bruyette kept a “Market Perform” rating on CBOE and raised the price target to $216, implying a potential upside of 2.7% from current levels.
While CBOE currently trades above its mean price target of $209.62, the Street-high price target of $251 suggests an upside potential of 19.4%.
