Interactive Brokers is Friday's IBD Stock Of The Day, as the financial services company broke a downtrend, offering investors a buy opportunity. The stock has rallied 20% since hitting recent lows a month ago.
Greenwich, Conn.-based Interactive Brokers provides automated trade execution services as well as custody services for stocks, commodities and foreign exchange across several countries.
Interactive's customer base includes individuals, small businesses, money managers, family offices, hedge funds and others. Its product line features a zero-commission trading platform for U.S.-listed stocks and ETFs while active traders can access advanced features in IBKR Pro.
The company has offices in the U.S., U.K., Canada, Ireland, Switzerland, Hungary, India, Singapore, Australia and China. Billionaire Thomas Peterffy founded Interactive Brokers in 1993. He still chairs the company and owns a majority of the Interactive Brokers stock.
Meanwhile, the Wall Street Journal reported late Thursday that on Sept. 16 Interactive Brokers plans to allow users to bet on whether Vice President Kamala Harris or former President Donald Trump will win the White House in November. Peterffy told the WSJ that IBKR expects to also allow betting on swing-state Senate races, but at a later date.
However, reports emerged Friday that the plan may be postponed after a federal appeals court gave the Commodity Futures Trading Commission a short delay to make its case that election betting platforms on U.S. financial markets should remain unlawful.
Interactive Brokers' top competitors include Robinhood, Charles Schwab and Morgan Stanley.
On July 16, Interactive Brokers topped second-quarter earnings and revenue estimates, with profit growing 33%. Full-year EPS is expected to increase 20% to $6.89 this year, according to FactSet.
Interactive Brokers, and many other financial institutions, has benefited in recent years from high interest rates, as the Federal Reserve hiked rates to combat inflation.
Interactive Brokers Stock Performance
IBKR shares climbed 3.6% to 128.07, hitting intraday highs of 130.11, during Friday's market action, breaking a downtrend in a handle. The stock has a buy point of 128.98, according to MarketSurge chart analysis. Interactive Brokers stock also decisively cleared its 21-day exponential moving average on Friday after bouncing from its 50-day moving average on Wednesday.
The stock hit recent lows of 103.69 on Aug. 5, but has rallied 23% since then. In 2024, IBKR has advanced 54% for the year. It has been running into resistance around 129 since May.
Interactive Brokers stock sits second in the Finance-Invest Banks/Brokers industry group. The 33 stocks in the group have collectively gained 13.9% this year.
Interactive Brokers stock has a 97 Composite Rating. The stock also has an 87 Relative Strength Rating and a 98 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Is Tesla Stock A Buy Or A Sell?
Get Full Access To IBD Stock Lists And Ratings
Learning How To Pick Great Stocks? Read Investor's Corner
AI Is Fueling A 'Nuclear Renaissance.' Bill Gates And Jeff Bezos Are In The Mix.
Market Roars, 25 Stocks In Buy Zone; Will Fed Rate Cut Be Big?
