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Interactive Brokers Group, Inc. (IBKR) Stock Drops Despite Market Gains: Important Facts to Note

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Interactive Brokers Group, Inc. (IBKR - Free Report) closed the latest trading day at $207.91, indicating a -0.14% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.58%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 0.81%.

Shares of the company have appreciated by 15.96% over the course of the past month, outperforming the Finance sector's gain of 2.5% and the S&P 500's gain of 4.61%.

Market participants will be closely following the financial results of Interactive Brokers Group, Inc. in its upcoming release. It is anticipated that the company will report an EPS of $1.73, marking a 1.7% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.32 billion, indicating a 7.65% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.06 per share and revenue of $5.36 billion. These totals would mark changes of +0.43% and +2.62%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Interactive Brokers Group, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.56% downward. Currently, Interactive Brokers Group, Inc. is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Interactive Brokers Group, Inc. is currently trading at a Forward P/E ratio of 29.51. Its industry sports an average Forward P/E of 14.97, so one might conclude that Interactive Brokers Group, Inc. is trading at a premium comparatively.

Investors should also note that IBKR has a PEG ratio of 2.82 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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