Interactive Brokers Group IBKR 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).
Image Source: Zacks Investment Research
Let’s take a closer look at how the company currently stacks up.
Interactive Brokers Posts Robust Results
IBKR shares have delivered a strong performance in 2024, up nearly 46% 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 in back-to-back releases.
The company’s results have been aided by higher customer trading volumes, with volumes in options, stocks, and futures increasing 35%, 26%, and 10%, respectively, throughout its latest period. Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
In addition, customers continue flocking to the platform, with customer accounts growing a notable 28% year-over-year to 2.9 million. Net interest income has also shown nice growth, moving 14% higher thanks to higher benchmark interest rates and customer credit balances.
The valuation picture here isn’t rich for the stock, with the current 17.1X forward 12-month earnings multiple primarily in line with the five-year median. The current PEG ratio works out to 1.0X, reflecting that investors are paying a fair price for the forecasted growth.
Zacks Consensus expectations for Interactive Brokers suggest 18% EPS growth on 14% higher sales. The stock sports a Style Score of ‘B’ for Growth.
Image Source: Zacks Investment Research
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 would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
