Interactive Brokers is Wednesday's pick for IBD 50 Growth Stocks To Watch as the global electronic markets maker and online broker nears two buy points. Interactive Brokers stock is recovering from August lows and is back near its all-time high.
The company offers trading services for stocks, options, futures, currencies, bonds and funds and operates in over 200 countries and territories.
The global electronic markets maker is ranked No. 2 out of 33 stocks in the finance-investment bankers and brokers group. Further, the group ranks 33rd out of the 197 industry groups covered by Investor's Business Daily.
Interactive Brokers Stock Back Near Highs
The stock fell hard during a three-session market sell-off that began Aug. 1. Since then it embarked on a hot streak, climbing 13 days out of the last 16 sessions that ended Tuesday.
In the process, Interactive Brokers reclaimed its 50-day moving average in mid-August. Shares were down 1% in recent action on Wednesday.
Interactive Brokers stock is in a stage-two consolidation with a 129.19 buy point, according to MarketSurge pattern recognition. The entry is also its all-time high of 129.19, reached on May 28. Investors can also interpret its chart to show a double-bottom base with a 129 entry.
Either way, the stock is about 3% below either of the buy points. Interactive Brokers stock has climbed nearly 52% this year so far.
Earnings Growth Expected To Ease
The online broker topped second-quarter adjusted earnings and net sales estimates on July 16. Its profit growth accelerated to 33% from 17% and 21% in the prior two quarters. Its net revenue rose 23% over the prior year's quarter and improved from 17% and 14% in the previous two periods. Interactive Brokers also reported customer accounts reached 2.92 million, a 28% rise from the year-earlier period.
Quarterly projections show profit and sales growth slowing over the next few quarters. Estimates from analysts polled by FactSet call for 20% earnings growth in 2024 and a flat year in 2025.
The fintech stock holds an 8 out of 99 IBD Earnings Stability factor. A lower number indicates more stable earnings over the last three to five years.
IBD Mutual Fund Index name Fidelity Contrafund initiated a position in Interactive Brokers stock in the June quarter. Lastly, the stock boasts a score of 98 out of a best-possible 99 in both Composite and Earnings Per Share ratings from IBD.
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