Latest news with #InteractiveBrokers
Yahoo
an hour ago
- Business
- Yahoo
Time to Buy Interactive Brokers (IBKR) Stock as Q2 Earnings Approach
Favorable quarterly reports from most of the large domestic banks are drawing attention to the financial sector, and Interactive Brokers IBKR is worthy of consideration ahead of its Q2 results on Thursday, July 17. Soaring nearly +100% in the last year, Interactive Brokers stock is up +35% year to date and looks poised for higher highs after hitting a 52-week peak of $60 a share in today's trading session. The automated global electronic broker is seeing supercharged trading volumes following an unprecedented rebound among the U.S. stock exchanges. Enhancing its product offerings, Interactive Brokers has recently launched IBKR InvestMentor, a microlearning app aimed at educating new investors and has expanded its ETF and cryptocurrency offerings to compete with competitors such as Charles Schwab SCHW and Robinhood Markets HOOD. Based on Zacks' estimates, Interactive Brokers' Q2 sales are expected to increase 8% to $1.34 billion compared to $1.23 billion a year ago. On the bottom line, Q2 EPS projections of $0.45 would be a slight increase from $0.44 a share in the prior year quarter. Furthermore, the Zacks ESP (Expected Surprise Prediction) indicates Interactive Brokers could surpass earnings expectations with the Most Accurate and recent estimates among Wall Street having Q2 EPS slated at $0.46 (Current Qtr below). Image Source: Zacks Investment Research Most intriguing and alluding to the plausibility of more upside in IBKR is that earnings estimate revisions for Interactive Brokers have continued to trend higher following the announcement of its upgraded product offerings and investment tools. In the last week, fiscal 2025 and FY26 EPS estimates are up 4% and 3% respectively. Image Source: Zacks Investment Research Interactive Brokers' annual earnings are now expected to rise 4% this year and are projected to increase another 7% in FY26 to $1.97 per share. Reassuringly, this is accompanied by projections of steady sales growth with Interactive Brokers' top line expected to expand 3% in FY25 and forecasted to stretch another 6% next year to $5.73 billion. Image Source: Zacks Investment Research While the excitement for Interactive Brokers and Robinhood's innovative trading platforms has led to blazing performances for both of their stocks, it's noteworthy that IBKR still trades at a reasonable 32.4X forward earnings multiple compared to HOOD at 79.6X. In comparison, Interactive Brokers trades closer to their Zacks Financial-Investment Bank Industry average of 15.8X and Charles Schwab's 21.9X. Image Source: Zacks Investment Research Investors looking for exposure to the growth that many FinTech firms offer have a more affordable option with Interactive Brokers as opposed to Robinhood Markets. Appearing to be poised for higher highs ahead of its Q2 report, IBKR currently sports a Zacks Rank #1 (Strong Buy) and notably has an 'A' Zacks Style Scores grade for Momentum. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
3 hours ago
- Business
- Globe and Mail
Time to Buy Interactive Brokers (IBKR) Stock as Q2 Earnings Approach
Favorable quarterly reports from most of the large domestic banks are drawing attention to the financial sector, and Interactive Brokers IBKR is worthy of consideration ahead of its Q2 results on Thursday, July 17. Soaring nearly +100% in the last year, Interactive Brokers stock is up +35% year to date and looks poised for higher highs after hitting a 52-week peak of $60 a share in today's trading session. The automated global electronic broker is seeing supercharged trading volumes following an unprecedented rebound among the U.S. stock exchanges. Enhancing its product offerings, Interactive Brokers has recently launched IBKR InvestMentor, a microlearning app aimed at educating new investors and has expanded its ETF and cryptocurrency offerings to compete with competitors such as Charles Schwab SCHW and Robinhood Markets HOOD. Interactive Brokers Q2 Expectations Based on Zacks' estimates, Interactive Brokers' Q2 sales are expected to increase 8% to $1.34 billion compared to $1.23 billion a year ago. On the bottom line, Q2 EPS projections of $0.45 would be a slight increase from $0.44 a share in the prior year quarter. Furthermore, the Zacks ESP (Expected Surprise Prediction) indicates Interactive Brokers could surpass earnings expectations with the Most Accurate and recent estimates among Wall Street having Q2 EPS slated at $0.46 (Current Qtr below). Positive EPS Revisions & Steady Growth Most intriguing and alluding to the plausibility of more upside in IBKR is that earnings estimate revisions for Interactive Brokers have continued to trend higher following the announcement of its upgraded product offerings and investment tools. In the last week, fiscal 2025 and FY26 EPS estimates are up 4% and 3% respectively. Image Source: Zacks Investment Research Interactive Brokers' annual earnings are now expected to rise 4% this year and are projected to increase another 7% in FY26 to $1.97 per share. Reassuringly, this is accompanied by projections of steady sales growth with Interactive Brokers' top line expected to expand 3% in FY25 and forecasted to stretch another 6% next year to $5.73 billion. IBKR Valuation Comparison While the excitement for Interactive Brokers and Robinhood's innovative trading platforms has led to blazing performances for both of their stocks, it's noteworthy that IBKR still trades at a reasonable 32.4X forward earnings multiple compared to HOOD at 79.6X. In comparison, Interactive Brokers trades closer to their Zacks Financial-Investment Bank Industry average of 15.8X and Charles Schwab's 21.9X. Bottom Line Investors looking for exposure to the growth that many FinTech firms offer have a more affordable option with Interactive Brokers as opposed to Robinhood Markets. Appearing to be poised for higher highs ahead of its Q2 report, IBKR currently sports a Zacks Rank #1 (Strong Buy) and notably has an 'A' Zacks Style Scores grade for Momentum. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report The Charles Schwab Corporation (SCHW): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report
Yahoo
a day ago
- Business
- Yahoo
2 Stocks I'm Still Holding for the Next Decade
Holding stocks while they rise in price is an important discipline if you are going to be a good individual investor. Remitly is a great stock to hold for the next decade because of its fast growth in the remittance sector. Interactive Brokers is the most profitable brokerage in the world, and has a lot of room to keep gaining market share. 10 stocks we like better than Remitly Global › It can be hard to hold huge winning stocks, but that is the best way to beat the stock market through buying individual companies. Just ask Warren Buffett, who sometimes holds a stock for multiple decades. Or founders of large technology players like Jeff Bezos, who still maintains a large position in Amazon to this day. Holding a stock and not trimming your winning investments is more difficult than it seems. Your instinct will tell you to take a profit when a stock jumps, as it feels like the safe play for your portfolio. This is contrary to the philosophy of the great long-term investors. Here are two stocks I think are buys today and plan on holding through thick and thin for the next decade. First up is the fast-growing Remitly Global (NASDAQ: RELY). It has come on the scene quickly and taken a share of the remittance market for individuals sending money overseas back to friends and family. Through a sleek mobile app, lower fees than traditional players and banking institutions, as well as a wide ability to pay out in local markets like India, Remitly is gaining a lot of share in the United States and increasingly other countries for cross-border transfers. Total transfer volume was $16.2 billion last quarter, up 41% year over year and well outpacing industry growth. It has a measly 2%-3% market share of remittance payments, giving the company a huge runway for expansion as it goes for the United States to other countries around the world. Revenue grew 34% year over year to $362 million, while the company is now generating a positive net income, albeit just slightly at $11.4 million in the period. Current earnings power underestimates the profit potential of Remitly's business. With an asset-light model, the company's true costs come from transaction processing and fees paid to financial partners. Most of its revenue is currently getting reinvested in product development and marketing to acquire new customers, which will fuel more revenue growth. When the business matures, investors should expect Remitly's profit margins to begin to expand, likely to 20% or higher. Its peer Wise already has a profit margin of 20%. Growing quickly, Remitly's annual revenue should soon hit $2 billion and has a path to grow to $5 billion over the long haul. This will enable the company to eventually generate at least $500 million in annual earnings, if not more. Today, the stock has a market cap of $3.77 billion, which makes the stock cheap compared to the future earnings potential. Buy Remitly and sit tight through the ups and downs of the stock price. The world of investing has changed rapidly in the last decade. Investors want free stock trades, global access to markets, easy-to-use mobile applications, and a variety of different financial instruments to buy. Robinhood Markets is the most well-known disrupter in stock brokerages, but it is underfollowed Interactive Brokers (NASDAQ: IBKR) that is the most profitable in the industry. Born to serve advanced trades and investment funds, Interactive Brokers is a technology-first brokerage that offers global coverage, a wide variety of financial instruments to buy, and cheap or free trading fees for its brokerage clients. It is gaining a lot of market share, with customer accounts up 32% last quarter to 3.62 million. It may have a lot fewer total users than Robinhood (which has 26 million), but Interactive Brokers has close to double the total client assets at $573.5 billion, which demonstrates the high-end customer base that it serves. These figures and Interactive Brokers' asset-light efficiency enable it to generate pre-tax profit margins of 74%, which is better than almost any company in the world. With hundreds of millions of investors around the world, Interactive Brokers is just scratching the surface when it comes to taking market share in the industry. It has a current price-to-earnings ratio (P/E) of 32, which is slightly high, but it still remains a great hold for investors over the next decade. As customers grow, so should earnings, which will drive the stock price higher over the long term. Before you buy stock in Remitly Global, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Remitly Global wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 14, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Amazon and Remitly Global. The Motley Fool has positions in and recommends Amazon, Interactive Brokers Group, and Wise Plc. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. 2 Stocks I'm Still Holding for the Next Decade was originally published by The Motley Fool
Yahoo
a day ago
- Business
- Yahoo
What Makes Interactive Brokers Group, Inc. (IBKR) a Strong Momentum Stock: Buy Now?
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at Interactive Brokers Group, Inc. (IBKR), which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Interactive Brokers Group, Inc. currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> In order to see if IBKR is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up. A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area. For IBKR, shares are up 7.45% over the past week while the Zacks Financial - Investment Bank industry is up 4.27% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 14.35% compares favorably with the industry's 6.76% performance as well. Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Interactive Brokers Group, Inc. have increased 46.94% over the past quarter, and have gained 93.64% in the last year. In comparison, the S&P 500 has only moved 17.01% and 13.4%, respectively. Investors should also take note of IBKR's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now IBKR is averaging 4,851,135 shares for the last 20 days.. The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with IBKR. Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost IBKR's consensus estimate, increasing from $1.76 to $1.84 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period. Given these factors, it shouldn't be surprising that IBKR is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Interactive Brokers Group, Inc. on your short list. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
These Are the 5 Hottest Stocks On Interactive Brokers
Interactive Brokers is one of the largest digital brokerages, executing roughly 3.45 million trades per day. The company recently released data about some of the most active stocks on its platform. In today's world of investing, it is important to understand sentiment and which stocks are popular. These 10 stocks could mint the next wave of millionaires › In today's market, while valuations are important, there are other factors impacting the movement of stocks, such as investment flows and sentiment. Part of this has to do with the rise of exchange-traded funds (ETFs), passive investing, and algorithmic trading. Understanding sentiment is important because it tells investors where flows are focused and what companies could be prone to big moves. The large brokerage Interactive Brokers recently released data showing the 25 hottest stocks on its platform. The data is from July 8 and examines the preceding five business days. Here are the five most actively traded stocks on the platform. It shouldn't surprise anyone to see Tesla (NASDAQ: TSLA) as the No. 1 stock on the list. The company and its outspoken CEO, Elon Musk, captivated the minds of investors as one of the first companies to make electric vehicles mainstream, and now as a company positioned to commercialize robotaxis and humanoid robots. Musk's foray into politics this year created lots of controversy as well. With the stock trading at a meteoric valuation, Tesla became a battleground stock. Some think future initiatives like robotaxis and humanoid robots mean the sky is the limit. Others think the stock is a sell, especially with the core EV business struggling this year. While I wouldn't recommend shorting the stock because it has rarely traded on fundamentals, I remain on the sidelines due to the massive valuation. Another obvious stock on this list is the artificial intelligence chip giant Nvidia (NASDAQ: NVDA), which is the largest publicly traded company and recently touched a $4 trillion market cap. The market clearly thinks AI will revolutionize society as we know it. As the market opportunity gets bigger, investors are likely to keep driving up the price of Nvidia, which is the pre-eminent maker of the graphics processing units (GPUs) that train large language models (LLM). Trading close to 38 times forward earnings, Nvidia is not that far above its five-year average. But below the surface are questions about the company's ability to maintain its monopoly and keep charging as much for chips as it has been. Nvidia also has other opportunities in autonomous driving and robotics that investors are starting to take notice of. I think investors can keep buying Nvidia but should probably take a dollar-cost averaging approach. The stablecoin company and issuer of USDC, one of the largest stablecoins, has been quite popular since going public in June. Circle's (NYSE: CRCL) stock has already surged 554% from its initial public offering price of $31 per share. Stablecoins, which are digital assets pegged to commodities or currencies, are viewed as the next major innovation in payments. Like cryptocurrencies, they have the ability to transfer money anywhere in the world, as long as the person or business has internet access. The associated fees are also lower than traditional payment methods. This makes stablecoins useful for people without access to the traditional banking system and for cross-border payments. While stablecoins certainly have tremendous potential, Circle seems to have run too far too fast right now. USDC has a nearly $62 billion market cap, and Circle is now at about a $45 billion market cap. Furthermore, lower interest rates could decrease Circle's revenue, which is made by earning yield on the reserve currencies backing its stablecoins. The AI decision-making company Palantir Technologies (NASDAQ: PLTR) has appeared invincible, with its stock up 86% this year. The company's various platforms have the ability to pull in data from a variety of different sources, organize it in a central place, and derive insights using AI and machine learning. Palantir can examine potential scenarios, recommend actions, and then analyze the possible repercussions. Palantir's platforms are easy to use for people who don't have experience working with LLMs. They can also track how certain data projects were created so they can be easily replicated or taken over by new managers. The company's products have been used by many different government departments and are resonating strongly with the business community as well. Palantir trades at an even higher valuation than Tesla at 234 times forward earnings. I don't personally buy stocks at these kinds of valuations, but I also do see immense potential for the company. If you buy Palantir, I would once again take a dollar-cost-averaging approach. The online brokerage Robinhood (NASDAQ: HOOD) blasted 138% higher this year, partly due to the crypto boom caused by President Donald Trump's administration's pro-crypto policies. The friendlier regulatory approach will make it easier for Robinhood to sell more cryptocurrencies on its platform, which could draw in more users and drive more activity among the company's existing user base. As the pioneer of commission-free trading, Robinhood has never had issues bringing users to the platform. But more recently, the company has been able to better monetize users, primarily with the company's monthly $5 Robinhood Gold memberships, which offer users margin investing, competitive yield on brokerage cash, and many trading tools. The company has a very high conversion rate for new users signing up to become Gold members. The Robinhood Gold Credit Card offers 3% cash back on all purchases, while the company also offers up to a 3% match on annual contributions to a Robinhood individual retirement account (IRA). All of these features have made Robinhood an attractive place for people to conduct their banking activities. The stock isn't cheap, trading at 63 times forward earnings, but I do think the company has executed well and is driving an intriguing investment story. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $427,709!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,087!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $671,477!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 7, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group, Nvidia, Palantir Technologies, and Tesla. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. These Are the 5 Hottest Stocks On Interactive Brokers was originally published by The Motley Fool
