CBOE

Zacks analyzes five securities exchange stocks amid industry headwinds. While diversified revenue streams, higher trading volumes, and technology investments support growth, the Securities and Exchanges industry faces challenges from regulatory changes, cybersecurity threats, and competition.

The industry ranks #166 out of 247 Zacks industries with negative earnings outlook, having underperformed the S&P 500 year-to-date. Five Hold-rated stocks are highlighted for consideration.

The SEC approved Cboe Global Markets' proposal to list binary options tied to company-specific KPIs, with Robinhood Markets expected to become the first retail brokerage offering these contracts covering over 100 metrics across 23 companies. While this presents a new revenue opportunity aligned with Robinhood's active-trading strategy, near-term monetization is limited by pending clearing approvals and fee waivers through 2026. Regulatory uncertainty around event-driven products and the need for sustained customer adoption also present challenges.

CBOE Global Markets (CBOE) is highlighted as a stock with strong potential to beat upcoming earnings estimates. The company has demonstrated a consistent history of beating earnings expectations, with an average surprise of 6.49% over the past two quarters. With a positive Earnings ESP of +0.98% and a Zacks Rank #3 (Hold), analysts suggest the stock has approximately a 70% probability of delivering another earnings beat when the next quarterly report is released on October 30, 2026.