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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, which is currently ranked in the top 1% of all Zacks industries. Let’s take a closer look at how the company stacks up.

Interactive Brokers

IBKR shares have delivered a strong performance over the past year, up nearly 150% and widely outperforming relative to the S&P 500. Favorable quarterly results have aided the move, with the company exceeding the Zacks Consensus EPS estimate by an average of 3% across its last four releases.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s results have been aided by higher customer trading volumes, with volumes in options and stocks increasing 32% and 65%, respectively, throughout its latest period. Commission revenue of $477 million throughout the period shot 37% higher year-over-year.

Below is a chart illustrating the company’s sales on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, customers continue flocking to the platform, with customer accounts growing a notable 30% year-over-year to 3.3 million throughout the latest period.

Valuation multiples have expanded considerably, with the current 30.6X forward 12-month earnings multiple well above the 18.7X five-year median. The current PEG ratio works out to 1.6X, again above the 0.8X five-year median.  

The stock sports a Style Score of ‘D’ for Value.

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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