Interactive Brokers Group, Inc. (IBKR) closed the most recent trading day at $64.19, moving +1.61% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.69% for the day. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.82%.
The company’s stock has dropped by 7.98% in the past month, falling short of the Finance sector’s gain of 0.09% and the S&P 500’s loss of 0.31%.
The upcoming earnings release of Interactive Brokers Group, Inc. will be of great interest to investors. The company is expected to report EPS of $0.49, down 3.92% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.43 billion, indicating a 0.29% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.06 per share and a revenue of $5.93 billion, demonstrating changes of +17.05% and +13.55%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Interactive Brokers Group, Inc. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.15% increase. Right now, Interactive Brokers Group, Inc. possesses a Zacks Rank of #2 (Buy).
Investors should also note Interactive Brokers Group, Inc.’s current valuation metrics, including its Forward P/E ratio of 30.67. For comparison, its industry has an average Forward P/E of 16.42, which means Interactive Brokers Group, Inc. is trading at a premium to the group.
We can additionally observe that IBKR currently boasts a PEG ratio of 1.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Financial – Investment Bank industry had an average PEG ratio of 1.07 as trading concluded yesterday.
The Financial – Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 28, putting it in the top 12% of all 250+ industries.
