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5 Reasons to Bet on Interactive Brokers (IBKR) Stock Now
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Interactive Brokers Group, Inc. (IBKR - Free Report) seems to be a solid bet right now given its strong fundamentals and growth prospects.
Though the company’s shares have gained only 8.1% in the last one year, underperforming the Zacks categorized Investment Brokers industry’s rally of 54.7%, it has been witnessing upward trend in estimate revisions lately, reflecting analysts’ optimism about its future prospects.
In the last 30 days, the Zacks Consensus Estimate for the current year was revised 1.5% upward. As a result, the stock currently carries a Zacks Rank #2 (Buy). We expect this trend to get reflected in its price performance.
Key aspects that make Interactive Brokers an attractive investment option are:
Revenue Strength: Interactive Brokers’ revenues increased at a CAGR of 9.1% in the last four years (2013–2016). Also, the top line is expected to grow 7% and 12.2% in 2017 and 2018, respectively.
Earnings per Share Growth: Though, Interactive Brokers witnessed negative EPS growth in the last 3–5 years, the trend is expected to reverse in the near term. The company’s earnings are projected to grow 9.2% and 16.3% in 2017 and 2018, respectively.
Further, its long-term (3–5 years) expected EPS growth of 13.4%, higher than the industry average of 10.9%, promises reward for shareholders.
Restructuring Initiatives: Given a low volatile environment, Interactive Brokers’ decision to close down majority of its operations in the Market Making segment and completely wind it up by the end of 2017 looks encouraging. Moreover, management’s plans of focusing solely on strengthening the Electronic Brokerage segment is expected to support the company’s financials going forward.
Strong Leverage: Interactive Brokers doesn’t use debt to finance its operations. On the other hand, the industry’s debt/equity ratio stands at 0.23. This reflects that the company will be financially stable even in adverse economic conditions.
Superior Return on Equity (ROE): Interactive Brokers’ ROE is 8.79% compared with the industry average of 8.74%, reflecting the company’s relatively better position over its peers.
Other Stocks to Consider
A few other top-ranked stocks in the finance space are Carolina Financial Corporation , UBS Group AG (UBS - Free Report) and BlackRock, Inc. (BLK - Free Report) .
Carolina Financial witnessed a 2.3% upward earnings estimate revision for the current year in the last 60 days. Its share price has increased 72.3% in the last one year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
UBS Group’s shares have gained 32.6% in the last one year and its Zacks Consensus Estimate for the current year was revised 5% upward in the last 60 days. It also sports a Zacks Rank #1.
BlackRock currently carries a Zacks Rank #2. Its earnings estimates have been marginally revised upward for the current year in the last 60 days. Its share price increased 34.4% in the last one year.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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5 Reasons to Bet on Interactive Brokers (IBKR) Stock Now
Interactive Brokers Group, Inc. (IBKR - Free Report) seems to be a solid bet right now given its strong fundamentals and growth prospects.
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Though the company’s shares have gained only 8.1% in the last one year, underperforming the Zacks categorized Investment Brokers industry’s rally of 54.7%, it has been witnessing upward trend in estimate revisions lately, reflecting analysts’ optimism about its future prospects.
In the last 30 days, the Zacks Consensus Estimate for the current year was revised 1.5% upward. As a result, the stock currently carries a Zacks Rank #2 (Buy). We expect this trend to get reflected in its price performance.
Key aspects that make Interactive Brokers an attractive investment option are:
Revenue Strength: Interactive Brokers’ revenues increased at a CAGR of 9.1% in the last four years (2013–2016). Also, the top line is expected to grow 7% and 12.2% in 2017 and 2018, respectively.
Earnings per Share Growth: Though, Interactive Brokers witnessed negative EPS growth in the last 3–5 years, the trend is expected to reverse in the near term. The company’s earnings are projected to grow 9.2% and 16.3% in 2017 and 2018, respectively.
Further, its long-term (3–5 years) expected EPS growth of 13.4%, higher than the industry average of 10.9%, promises reward for shareholders.
Restructuring Initiatives: Given a low volatile environment, Interactive Brokers’ decision to close down majority of its operations in the Market Making segment and completely wind it up by the end of 2017 looks encouraging. Moreover, management’s plans of focusing solely on strengthening the Electronic Brokerage segment is expected to support the company’s financials going forward.
Strong Leverage: Interactive Brokers doesn’t use debt to finance its operations. On the other hand, the industry’s debt/equity ratio stands at 0.23. This reflects that the company will be financially stable even in adverse economic conditions.
Superior Return on Equity (ROE): Interactive Brokers’ ROE is 8.79% compared with the industry average of 8.74%, reflecting the company’s relatively better position over its peers.
Other Stocks to Consider
A few other top-ranked stocks in the finance space are Carolina Financial Corporation , UBS Group AG (UBS - Free Report) and BlackRock, Inc. (BLK - Free Report) .
Carolina Financial witnessed a 2.3% upward earnings estimate revision for the current year in the last 60 days. Its share price has increased 72.3% in the last one year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
UBS Group’s shares have gained 32.6% in the last one year and its Zacks Consensus Estimate for the current year was revised 5% upward in the last 60 days. It also sports a Zacks Rank #1.
BlackRock currently carries a Zacks Rank #2. Its earnings estimates have been marginally revised upward for the current year in the last 60 days. Its share price increased 34.4% in the last one year.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>