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Bull of the Day: Interactive Brokers (IBKR)

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Interactive Brokers Group (IBKR - Free Report) operates as an automated global electronic market maker and broker. Analysts have positively revised expectations across the board, landing the stock into a Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

In addition to favorable earnings estimate revisions, the stock resides in the Zacks Financial – Investment Bank industry, currently ranked in the top 4% of all Zacks industries (11/250). Let’s take a closer look at how the company currently stacks up.

Interactive Brokers

IBKR shares have been notably strong year-to-date, gaining +55% compared to the S&P 500’s impressive +12% gain. The company’s latest set of quarterly results brought post-earnings positivity, with it exceeding both earnings and revenue expectations.

The results snapped a streak of mixed earnings results, with earnings and revenue growing by 21% and 25%, respectively.

Zacks Investment Research
Image Source: Zacks Investment Research

IBKR’s revenue growth has remained strong, with the company posting double-digit percentage year-over-year sales growth rates in each of its last seven periods. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, investors stand to reap a passive income from IBKR shares, which currently yield a modest 0.3% annually. While the current yield is a tad underwhelming, the company boosted its quarterly payout by 150% following the release of its latest quarterly results, reflecting a shareholder-friendly nature.

The company maintains a bright growth outlook for its current fiscal year, with Zacks Consensus estimates suggesting a 13% boost in earnings on a 10% sales increase.

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Interactive Brokers (IBKR - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).


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