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Interactive Brokers Faces Growth Concerns: Time to Sell?
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On Apr 5, we have issued an updated research report on Interactive Brokers Group, Inc. (IBKR - Free Report) . Dismal performance of the Market Making segment and intensifying competitive environment remain the company’s near-term concerns.
Notably, over the last 30 days, the Zacks Consensus Estimate for the stock fell nearly 1% to $1.47 for 2017. Also, for 2018, estimates fell 1.8% to $1.69 per share over the same time frame. Thus, the stock carries a Zacks Rank #4 (Sell).
Interactive Brokers’ shares lost 6.6% in the last six months, as against 24.3% gain of the Zacks categorized Investment Brokers industry.
We remain concerned about the dismal performance of the Market Making segment as Interactive Brokers pays quarterly dividend from this segment. Notably, the segment’s performance was disappointing during 2016 while in fourth-quarter 2015, its earnings fell short of the amount required to fund dividends.
Further, intensifying market rivalry and increasing volatility have been hampering the company’s profitability. Also, Interactive Brokers’ dependence on IBG LLC is also a reason for concern.
However, a low level of compensation expenses, development of proprietary software and increasing emerging market customers should continue contributing to Interactive Brokers’ growth.
LPL Financial’s earnings estimates were revised 7.1% upward for the current year, in the past 60 days. Over the last six months, the company’s share price rose 26%.
Yintech Investment’s current-year earnings estimates were revised 8.7% upward over the last 60 days. Further, the stock jumped 13.9% over the last six months.
Raymond James’ current-year earnings estimates were revised 3.1% upward over the last 60 days. Also, the company’s shares increased 25.4%, over the past six months.
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Interactive Brokers Faces Growth Concerns: Time to Sell?
On Apr 5, we have issued an updated research report on Interactive Brokers Group, Inc. (IBKR - Free Report) . Dismal performance of the Market Making segment and intensifying competitive environment remain the company’s near-term concerns.
Notably, over the last 30 days, the Zacks Consensus Estimate for the stock fell nearly 1% to $1.47 for 2017. Also, for 2018, estimates fell 1.8% to $1.69 per share over the same time frame. Thus, the stock carries a Zacks Rank #4 (Sell).
Interactive Brokers’ shares lost 6.6% in the last six months, as against 24.3% gain of the Zacks categorized Investment Brokers industry.
We remain concerned about the dismal performance of the Market Making segment as Interactive Brokers pays quarterly dividend from this segment. Notably, the segment’s performance was disappointing during 2016 while in fourth-quarter 2015, its earnings fell short of the amount required to fund dividends.
Further, intensifying market rivalry and increasing volatility have been hampering the company’s profitability. Also, Interactive Brokers’ dependence on IBG LLC is also a reason for concern.
However, a low level of compensation expenses, development of proprietary software and increasing emerging market customers should continue contributing to Interactive Brokers’ growth.
Stocks Worth Considering
Some better-ranked stocks in the same space include LPL Financial Holdings Inc. (LPLA - Free Report) , Yintech Investment Holdings Limited and Raymond James Financial, Inc. (RJF - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LPL Financial’s earnings estimates were revised 7.1% upward for the current year, in the past 60 days. Over the last six months, the company’s share price rose 26%.
Yintech Investment’s current-year earnings estimates were revised 8.7% upward over the last 60 days. Further, the stock jumped 13.9% over the last six months.
Raymond James’ current-year earnings estimates were revised 3.1% upward over the last 60 days. Also, the company’s shares increased 25.4%, over the past six months.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>