Back to top

Image: Bigstock

Interactive Brokers Group, Inc. (IBKR) Outperforms Broader Market: What You Need to Know

Read MoreHide Full Article

In the latest trading session, Interactive Brokers Group, Inc. (IBKR - Free Report) closed at $122.11, marking a +0.87% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.09% for the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.16%.

Heading into today, shares of the company had lost 5.42% over the past month, lagging the Finance sector's gain of 0.26% and the S&P 500's gain of 2.83% in that time.

The upcoming earnings release of Interactive Brokers Group, Inc. will be of great interest to investors. The company is predicted to post an EPS of $1.62, indicating a 22.73% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.18 billion, up 18.45% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $6.59 per share and a revenue of $4.76 billion, demonstrating changes of +14.61% and +9.63%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Interactive Brokers Group, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Interactive Brokers Group, Inc. presently features a Zacks Rank of #2 (Buy).

Looking at its valuation, Interactive Brokers Group, Inc. is holding a Forward P/E ratio of 18.37. This indicates a premium in contrast to its industry's Forward P/E of 18.19.

Investors should also note that IBKR has a PEG ratio of 1.21 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Financial - Investment Bank industry stood at 1.15 at the close of the market yesterday.

The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Interactive Brokers Group, Inc. (IBKR) - free report >>

Published in