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5 Reasons Why Interactive Brokers (IBKR) Stock is Worth Buying Now
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It seems to be a wise idea to add Interactive Brokers’ (IBKR - Free Report) stock to your portfolio at the moment. Despite concerns related to mounting costs and low interest rates, the company is well positioned for growth backed by its technological excellence and global expansion strategy, which are likely to support revenues.
Further, analysts are bullish on the stock’s prospects. Over the past 30 days, the Zacks Consensus Estimate for earnings has moved 8.8% and 11.8% north for 2021 and 2022, respectively. Interactive Brokers flaunts a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Looking at its price performance, shares of the company have surged 52.6% over the past six months, underperforming the industry’s rally of 66.9%.
Other Fundamental Factors That Make Interactive Brokers a Solid Pick
Earnings Growth: The company has witnessed earnings per share growth of 16.8% in the past three to five years, slightly higher than the industry’s 16.6%. This uptrend is likely to continue in the days to come. The company’s earnings are projected grow at a rate of 14.5% and 3.2% in 2021 and 2022, respectively.
Revenue Strength: Interactive Brokers’ revenues have witnessed a compound annual growth rate (CAGR) of 13.3% for the last six years (2015-2020), largely driven by a continued rise in interest income and commissions. It has been taking business expansion initiatives with the goal to boost revenues. Development of proprietary software, the launch of IBKR Lite and Impact Dashboard, and the deal to buy the retail unit of Folio Investments are some of the moves that will continue to fortify its position in the online brokerage space.
These initiatives are expected to help Interactive Brokers generate solid financial returns. Further, this has resulted in a steady improvement in Daily Average Revenue Trades. The uptrend in revenues is anticipated to continue as reflected by the projected sales growth rate of 7.7% for 2021 and 4.1% for 2022.
Technological Advancement: Development of proprietary software has resulted in operating efficiency for Interactive Brokers. The company has a significantly low level of compensation expense, primarily aided by its technological excellence.
Global Expansion Strategy: Interactive Brokers continues with its efforts to expand globally. The company continues to explore opportunities in the emerging markets of Taiwan, Mexico and India. Furthermore, authorization from the Central Bank of Ireland will help it set up a new entity in the country. Also, it sees rapid growth in its European business.
Strong Leverage: Interactive Brokers’ debt/equity ratio is nil compared with the industry average of 0.23. It highlights the financial stability of the company even amid adverse economic conditions.
Other Stocks Worth Considering
County Bancorp, Inc. has witnessed an upward earnings estimate revision of 13.9% for the current year over the past 60 days. Its shares have gained 27.3% over the past six months. The company sports a Zacks Rank #1 at present.
Civista Bancshares, Inc.’s (CIVB - Free Report) 2021 earnings estimate has moved 25.3% north in the past 60 days. Over the past six months, shares of the company have rallied 73.7%. At present, it flaunts a Zacks Rank of 1.
Financial Institutions, Inc. (FISI - Free Report) recorded an upward earnings estimate revision of 9.5% for the ongoing year in 60 days’ time. Shares of this bank have appreciated 89.1% over the past six months. The stock currently sports a Zacks Rank #1.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
5 Reasons Why Interactive Brokers (IBKR) Stock is Worth Buying Now
It seems to be a wise idea to add Interactive Brokers’ (IBKR - Free Report) stock to your portfolio at the moment. Despite concerns related to mounting costs and low interest rates, the company is well positioned for growth backed by its technological excellence and global expansion strategy, which are likely to support revenues.
Further, analysts are bullish on the stock’s prospects. Over the past 30 days, the Zacks Consensus Estimate for earnings has moved 8.8% and 11.8% north for 2021 and 2022, respectively. Interactive Brokers flaunts a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Looking at its price performance, shares of the company have surged 52.6% over the past six months, underperforming the industry’s rally of 66.9%.
Other Fundamental Factors That Make Interactive Brokers a Solid Pick
Earnings Growth: The company has witnessed earnings per share growth of 16.8% in the past three to five years, slightly higher than the industry’s 16.6%. This uptrend is likely to continue in the days to come. The company’s earnings are projected grow at a rate of 14.5% and 3.2% in 2021 and 2022, respectively.
Revenue Strength: Interactive Brokers’ revenues have witnessed a compound annual growth rate (CAGR) of 13.3% for the last six years (2015-2020), largely driven by a continued rise in interest income and commissions. It has been taking business expansion initiatives with the goal to boost revenues. Development of proprietary software, the launch of IBKR Lite and Impact Dashboard, and the deal to buy the retail unit of Folio Investments are some of the moves that will continue to fortify its position in the online brokerage space.
These initiatives are expected to help Interactive Brokers generate solid financial returns. Further, this has resulted in a steady improvement in Daily Average Revenue Trades. The uptrend in revenues is anticipated to continue as reflected by the projected sales growth rate of 7.7% for 2021 and 4.1% for 2022.
Technological Advancement: Development of proprietary software has resulted in operating efficiency for Interactive Brokers. The company has a significantly low level of compensation expense, primarily aided by its technological excellence.
Global Expansion Strategy: Interactive Brokers continues with its efforts to expand globally. The company continues to explore opportunities in the emerging markets of Taiwan, Mexico and India. Furthermore, authorization from the Central Bank of Ireland will help it set up a new entity in the country. Also, it sees rapid growth in its European business.
Strong Leverage: Interactive Brokers’ debt/equity ratio is nil compared with the industry average of 0.23. It highlights the financial stability of the company even amid adverse economic conditions.
Other Stocks Worth Considering
County Bancorp, Inc. has witnessed an upward earnings estimate revision of 13.9% for the current year over the past 60 days. Its shares have gained 27.3% over the past six months. The company sports a Zacks Rank #1 at present.
Civista Bancshares, Inc.’s (CIVB - Free Report) 2021 earnings estimate has moved 25.3% north in the past 60 days. Over the past six months, shares of the company have rallied 73.7%. At present, it flaunts a Zacks Rank of 1.
Financial Institutions, Inc. (FISI - Free Report) recorded an upward earnings estimate revision of 9.5% for the ongoing year in 60 days’ time. Shares of this bank have appreciated 89.1% over the past six months. The stock currently sports a Zacks Rank #1.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>