From Nasdaq:

The Zacks Securities and Exchanges industry is experiencing growth due to increased trading volumes and product expansions, including the adoption of crypto assets by leading companies like CME Group, Intercontinental Exchange, and Cboe Global Markets. However, complying with regulations and changing investment patterns pose challenges for these industry players. The industry is also seeing an increase in non-trading revenue and has been performing well in the past year.

There are three key trends shaping the industry’s future. First, volatility is driving trading volume, which in turn fuels fees and profits. Second, the industry is experiencing mergers and acquisitions, leading to a diversified product portfolio and a stronger global presence. Lastly, continuous investment in technology, including automation and advancements in trading systems, is helping the industry keep up with changing dynamics. However, these players also have to comply with a number of regulations.

The Zacks Industry Rank indicates bright prospects for the Securities and Exchanges industry. It currently ranks #13 out of 253 Zacks industries, reflecting positive earnings outlook and a 8.8% upward revision in earnings estimates for the current year.

The Securities and Exchanges industry has outperformed the broader Zacks Finance sector but underperformed the S&P 500, with a 17.7% increase compared to the sector’s 9.7% rise and the S&P 500’s 20.9% increase over the past year.

From the industry, CME Group, Coinbase Global, Cboe Global Markets, and MarketAxess are worth considering for investment, each showing signs of potential growth and strong financial standing in the industry.



Read more: 5 Stocks to Watch From the Thriving Securities and Exchanges Industry