Positive. Industry experiencing revenue growth, companies expected to benefit from trading volatility and crypto assets.
From Nasdaq: 2024-04-05 05:28:00
The Securities and Exchanges industry is experiencing revenue growth thanks to trading volume increases and the expansion of product portfolios. Companies like Intercontinental Exchange, CME Group, Coinbase Global Inc., Nasdaq, and Cboe Global Markets are expected to benefit from the rise in trading volatility and the adoption of more crypto assets. Despite challenges from compliance and investment alterations, these industry players are focusing on non-trading revenue sources to drive business dynamism.
Key trends shaping the future of the Securities and Exchanges industry include volatility driving trading volume growth, mergers and acquisitions for diversified product portfolios, and continuous investment in technology. The industry is ramping up technological advancements through machine learning and automation to enhance trading efficiency and reduce human errors and cyber threats. Strategic alliances and acquisitions aim to penetrate new markets and offer innovative products and services.
The Zacks Industry Rank for the Securities and Exchanges industry is #65, placing it in the top 26% of industries. Industry players have outperformed the broader Zacks Finance sector and the S&P 500 over the past year, with a 31.6% growth compared to 8.2% and 24.9%, respectively. The industry’s current valuation, based on price-to-book ratio, is 3.8X, lower than the S&P 500’s 6.44X, indicating potential investment opportunities. Five stocks from the industry to watch include Coinbase Global, Intercontinental Exchange, Cboe Global Markets, and Nasdaq, with potential for growth based on revenue forecasts and stock performance.
Read more at Nasdaq Stock Market: Zacks Industry Outlook Highlights Intercontinental Exchange, CME Group, Coinbase Global, Nasdaq and Cboe Global