CBOE Holdings (CBOE) Reaches New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified CBOE Holdings ( CBOE) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified CBOE Holdings as such a stock due to the following factors:

  • CBOE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.4 million.
  • CBOE has traded 6,123 shares today.
  • CBOE is trading at a new lifetime high.

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More details on CBOE:

CBOE Holdings, Inc., through its subsidiaries, operates markets for the trading of listed, or exchange-traded, derivatives contracts. The stock currently has a dividend yield of 1.2%. CBOE has a PE ratio of 28.8. Currently there are 2 analysts that rate CBOE Holdings a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for CBOE Holdings has been 635,100 shares per day over the past 30 days. CBOE has a market cap of $5.0 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.66 and a short float of 2.1% with 3.53 days to cover. Shares are up 10.5% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CBOE Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • CBOE's revenue growth has slightly outpaced the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 9.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CBOE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.81, which clearly demonstrates the ability to cover short-term cash needs.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 60.06% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CBOE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CBOE HOLDINGS INC has improved earnings per share by 15.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CBOE HOLDINGS INC increased its bottom line by earning $1.99 versus $1.78 in the prior year. This year, the market expects an improvement in earnings ($2.28 versus $1.99).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Diversified Financial Services industry average. The net income increased by 16.1% when compared to the same quarter one year prior, going from $39.72 million to $46.11 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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