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Interactive Brokers Group, Inc. (IBKR) Exceeds Market Returns: Some Facts to Consider

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Interactive Brokers Group, Inc. (IBKR - Free Report) closed the most recent trading day at $92.76, moving +2.15% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.65%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 3.07%.

Heading into today, shares of the company had gained 4.38% over the past month, outpacing the Finance sector's gain of 2.86% and the S&P 500's gain of 0.48%.

The investment community will be paying close attention to the earnings performance of Interactive Brokers Group, Inc. in its upcoming release. In that report, analysts expect Interactive Brokers Group, Inc. to post earnings of $0.59 per share. This would mark year-over-year growth of 15.69%. Our most recent consensus estimate is calling for quarterly revenue of $1.66 billion, up 12.16% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.46 per share and revenue of $6.9 billion. These totals would mark changes of +12.33% and +12.14%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Interactive Brokers Group, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Interactive Brokers Group, Inc. boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Interactive Brokers Group, Inc. is currently trading at a Forward P/E ratio of 36.97. This expresses a premium compared to the average Forward P/E of 14.32 of its industry.

We can additionally observe that IBKR currently boasts a PEG ratio of 2.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Investment Bank was holding an average PEG ratio of 1.09 at yesterday's closing price.

The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 37% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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