Bull of the Day: Interactive Brokers (IBKR)

Interactive Brokers Group IBKR is an automated global electronic brokerage firm providing trade execution, clearing, and custody services to individual and institutional investors. EPS revisions remain bullish across the board, with the stock sporting a Zacks Rank #1 (Strong Buy).

Interactive Brokers Posts Strong Results

IBKR’s latest set of results came in comfortably above our expectations, posting adjusted earnings of $0.69 per share and revenues of $1.9 billion. Earnings climbed 35% YoY, while revenues jumped a similarly strong 28% from the same period last year.

Customer accounts jumped 34% YoY to roughly 5.2 million during the above-mentioned quarter, while Daily Average Revenue Trades (DARTs) climbed 36%. In addition, commission revenue and net interest income rose 30% and 23% YoY, respectively.

Growth is expected to remain rock-solid for IBKR, with current Zacks Consensus estimates suggesting 18% revenue growth on 23% higher earnings in its current fiscal year, with FY27 estimates suggesting 13% revenue growth on 18% higher earnings.

IBKR shares have enjoyed strong momentum alongside the improving earnings picture, gaining more than 16% over the last three months. While the stock isn’t cheap, robust account growth, rising trading activity, and positive EPS revisions overall keep the near-term outlook bright.

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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This article originally published on Zacks Investment Research (zacks.com).

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