Why CBOE Global (CBOE) is a Top Growth Stock for the Long-Term

CBOE Global Markets (CBOE) is highlighted by Zacks as a top growth stock, holding a Zacks Rank #3 (Hold) but earning an 'A' for both its VGM and Growth Style Scores. The exchange operator is forecasted for 11.6% year-over-year earnings growth this fiscal year, with nine analysts recently raising fiscal 2025 estimates, increasing the consensus to $9.61 per share. These strong growth metrics and positive revisions position CBOE as a compelling consideration for growth-focused investors despite its current 'Hold' ranking.

Analysis

Cboe Global Markets (CBOE) presents a compelling growth narrative despite a neutral Zacks #3 (Hold) rating. The company is forecasted to deliver 11.6% year-over-year earnings growth in the current fiscal year, a significant figure for an established exchange operator. This positive outlook is reinforced by recent analyst activity, with nine upward earnings estimate revisions for fiscal 2025 over the last 60 days, pushing the consensus estimate up by $0.10 to $9.61 per share. Furthermore, CBOE has a track record of outperformance, evidenced by an average positive earnings surprise of 1.9%. While the primary rank is neutral, the stock's 'A' rating for both its composite VGM (Value, Growth, Momentum) and its specific Growth Style Score indicates strong underlying quantitative metrics that suggest its growth prospects and fundamental health are top-tier, potentially signaling an improving outlook not yet reflected in the main 'Hold' rating.

Key Decisions for Investors

• Growth-oriented investors should consider CBOE as the combination of an 11.6% earnings growth forecast and an 'A' Growth Score indicates strong fundamental momentum.
• Investors should not be deterred by the neutral Zacks #3 'Hold' rating, as the positive analyst estimate revisions and top-tier 'A' VGM score suggest the underlying financial outlook is stronger than the primary rating implies.
• Monitor upcoming earnings reports to see if the company continues its trend of positive surprises, which could act as a catalyst for a rating upgrade and validate the current optimistic growth forecasts.