The Zacks Financial – Investment Bank industry is currently ranked in the top 22% (54 out of 249) of all Zacks Industries.
As we’re all aware, 50% of a stock's price movement can be attributed to its group, making it clear why it’s critical for investors to target stocks in a thriving industry.
A stock residing within the industry and a part of the Zacks Finance sector, Interactive Brokers IBKR, has seen its earnings outlook shift positively over the last several months, pushing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Interactive Brokers Group operates as an automated global electronic market maker and broker. The company strives to provide customers with advantageous execution prices and trading, risk and portfolio management tools, research facilities, and investment products all at low prices.
Let’s take a closer look at how the company currently stacks up.
Share Performance & Valuation
IBKR shares have been notably strong over the last six months, up nearly 40% and crushing the S&P 500’s performance.
Image Source: Zacks Investment Research
The picture remains the same when shrinking the timeframe to encompass just 2023; year-to-date, IBKR shares have outperformed the S&P 500, up 7.4%.
Image Source: Zacks Investment Research
Clearly, buyers have been present.
Further, IBKR shares currently trade at a 14.3X forward earnings multiple, a fraction of the 22.1X five-year median and nearly in line with the Zacks Finance sector average.
Image Source: Zacks Investment Research
Quarterly Performance
Interactive Brokers has posted better-than-expected quarterly results as of late, exceeding the Zacks Consensus EPS Estimate in back-to-back quarters.
Just in its latest release, IBKR reported earnings more than 12% above expectations and posted a 5.3% revenue surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Dividends
Who doesn’t enjoy getting paid?
Fortunately for those who seek income, Interactive Brokers has that covered; the company’s annual dividend currently yields a modest 0.5%, below the Zacks Finance sector by a fair margin.
In addition, the company’s 10% payout ratio is definitely sustainable.
Image Source: Zacks Investment Research
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.
Additionally, 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 keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
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Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
