IBKR Touches All-Time High: Is the Stock Worth Investing in Now?

Zacks11-12

Interactive Brokers Group IBKR has been performing remarkably well this year. The stock touched a new all-time high of $179.68 during Monday’s trading session.IBKR is in the spotlight because of the ...

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The stock touched a new all-time high of $179.68 during Monday’s trading session.IBKR is in the spotlight because of the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/ibkr-touches-time-high-stock-142100861.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>IBKR Touches All-Time High: Is the Stock Worth Investing in Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIBKR Touches All-Time High: Is the Stock Worth Investing in Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-12 22:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/ibkr-touches-time-high-stock-142100861.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Interactive Brokers Group IBKR has been performing remarkably well this year. The stock touched a new all-time high of $179.68 during Monday’s trading session.IBKR is in the spotlight because of the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/ibkr-touches-time-high-stock-142100861.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0648001328.SGD","symbol_name":"Natixis Harris Associates US Equity RA SGD","start_time":0,"source_url":"https://finance.yahoo.com/news/ibkr-touches-time-high-stock-142100861.html","article_id":"2483133080","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ZiYsP2UQLHFjwbkYcCogFQ--~B/aD0zNTQ7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/7c9bff030461c9b90b0dad3fd765fa01"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483133080","pubTimestamp":1731421260,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Interactive Brokers Group IBKR has been performing remarkably well this year. The stock touched a new all-time high of $179.68 during Monday’s trading session.IBKR is in the spotlight because of the recently held U.S. presidential elections and the Federal Reserve’s interest rate cuts. These events resulted in major market volatility and increased trading volume, driving significant benefits for this global electronic brokerage firm.Hence, Interactive Brokers stock has surged 116.5% this year. This impressive rise has significantly outpaced the 39% rally of the industry it belongs to. When compared with its close peers, IBKR’s performance is noticeably stronger. Charles Schwab SCHW has gained just 13.1%, while Tradeweb Markets Inc. TW stock has jumped 45.5% in the same timeframe. Year-to-Date Price Performance. IBKR processes trades in stocks, futures, options, cryptocurrencies and forex on more than 150 exchanges across several countries and currencies. Unlike many of its peers, the c","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU0971096721.USD":"富达环球金融服务 A","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","LU0477156953.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"RE\" (USD) ACC","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","LU2360107671.USD":"BGF FINTECH \"A4\" (USD) INC","LU0354030438.USD":"富国美国大盘成长基金Cl A Acc","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","TW":"Tradeweb Markets Inc.","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","BK4588":"碎股","LU0345774391.USD":"NINETY ONE GSF AMERICAN FRANCHISE \"A\" (USD) ACC","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","SG9999014021.USD":"UNITED GLOBAL DURABLE EQUITIES (USDHDG) ACC","SCHW":"嘉信理财","BK4589":"SVB概念","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","BK4581":"高盛持仓","LU1791807156.HKD":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","BK4504":"桥水持仓","SG9999001077.SGD":"United International Growth Fund SGD","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD","LU0130517989.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"R\" INC","LU1153585028.USD":"BGF GLOBAL LONG-HORIZON EQUITY  \"A4\" (USD) INC","BK4112":"金融交易所和数据","SG9999014039.USD":"UNITED GLOBAL DURABLE EQUITIES (USDHDG) INC","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","SG9999014005.SGD":"United Global Durable Equities Fund Acc SGD","BK4127":"投资银行业与经纪业","SG9999014013.SGD":"United Global Durable Equities Fund Dis SGD","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","LU1861217088.USD":"贝莱德金融科技A2","IBKR":"盈透证券","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","LU0106831901.USD":"贝莱德世界金融基金A2","LU1861220207.SGD":"Blackrock FinTech A2 SGD-H","BK4585":"ETF&股票定投概念","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD"},"translate_title":"IBKR触及历史新高：该股现在值得投资吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IBKR":1,"TW":1,"SCHW":1,"US10Y.BOND":0.6,"US12M.BOND":0.6,"US2Y.BOND":0.6,"US30Y.BOND":0.6,"US3Y.BOND":0.6,"US5Y.BOND":0.6,"US6M.BOND":0.6,"US7Y.BOND":0.6},"content_text":"Interactive Brokers Group IBKR has been performing remarkably well this year. The stock touched a new all-time high of $179.68 during Monday’s trading session.IBKR is in the spotlight because of the recently held U.S. presidential elections and the Federal Reserve’s interest rate cuts. These events resulted in major market volatility and increased trading volume, driving significant benefits for this global electronic brokerage firm.Hence, Interactive Brokers stock has surged 116.5% this year. This impressive rise has significantly outpaced the 39% rally of the industry it belongs to. When compared with its close peers, IBKR’s performance is noticeably stronger. Charles Schwab SCHW has gained just 13.1%, while Tradeweb Markets Inc. TW stock has jumped 45.5% in the same timeframe. Year-to-Date Price Performance \nImage Source: Zacks Investment Research\nFed Rate Cuts & U.S. Presidential Election Aid IBKR\nAfter two years of aggressive interest rate hikes, the Fed has begun cutting rates. In September, the central bank lowered the rates by jumbo 50 basis points and followed this up with a 25-basis point cut last week. Driven by clarity on several macroeconomic factors, equity markets soared. Also, the S&P 500 Index has posted positive returns 86% of the time in the 12 months following the first rate cut of the cycle.Additionally, the U.S. presidential elections and results have led to higher volatility and volume across the stock markets. Since the results were out, all major stock indexes have been rallying. The S&P 500 Index and the Dow closed above 6,000 and 44,000 levels, respectively, for the first time on Monday.As investors contemplate how incoming President Donald Trump’s policies will impact the U.S. economy and industries, market volatility and heightened client activity are expected to persist. Hence, IBKR is likely to keep benefiting from the rise in global robust options, futures and stock volumes and increased volatility. This will drive Interactive Brokers’ commission fees higher. For the nine months ended Sept. 30, 2024, commission fees jumped 21% year over year to $1.22 billion. Net interest income grew 13% during the same time frame to $2.34 billion despite interest rate cuts in several countries. “A continued risk-on environment” resulted in a significant jump in margin borrowing, and solid account growth led to increases in the company’s segregated cash portfolio.Also, the introduction of the election political contract on its newly launched ForecastEx platform resulted in a rise in new account openings in October. Net new accounts were 65,000 last month, witnessing an increase of 12% from the prior month. Further, total client Daily Average Revenue Trades (DARTs) grew 7% to 2,823,000 in October.\nOther Factors Driving IBKR Stock\nIBKR processes trades in stocks, futures, options, cryptocurrencies and forex on more than 150 exchanges across several countries and currencies. Unlike many of its peers, the company has a low compensation expense relative to net revenues (11.5% in the first nine months of 2024) driven by its technological excellence.Since its inception, Interactive Brokers has been focused on developing proprietary software to automate broker-dealer functions. This has resulted in steady revenue growth as commission per trade improves. Net revenues are expected to rise further, given the solid DART numbers. Interactive Brokers has taken several measures to enhance its global presence and expand its product suite. These efforts have bolstered the company's market share. IBKR intends to strengthen its position in the online brokerage space by launching new products and services.ForecastEx was unveiled on Aug. 1. The company’s clients from eligible countries can trade Forecast Contracts on upcoming economic data releases and climate indicators.Driven by favorable developments, IBKR is expected to deliver solid results in 2024 and 2025. Sales Estimates \nImage Source: Zacks Investment Research\nEarnings Estimates \nImage Source: Zacks Investment Research\nLofty Valuations for Interactive Brokers Stock\nGiven the impressive rally, IBKR stock appears expensive relative to the industry. The company’s forward 12-month price/earnings (P/E) multiple of 25.53X is well above the industry’s 14.12X.  Price-to-Earnings F12M \nImage Source: Zacks Investment Research\nHence, from a valuation perspective, Interactive Brokers shares doesn’t offer an attractive buying opportunity. Also, the stock is trading at a premium compared with SCHW, which has a P/E F12M ratio of 20.85. On the other hand, TW is trading above IBKR’s P/E F12M ratio at 39.65.\nFinal Thoughts on IBKR Stock\nConsidering the pros and cons of IBKR, investors should refrain from rushing to buy the stock right now. Instead, they should keep an eye on the upcoming administrative changes and other macroeconomic developments before making any decision. Its premium valuation also warrants caution.The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant 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\nThe Charles Schwab Corporation (SCHW) : Free Stock Analysis Report\nInteractive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report\nTradeweb Markets Inc. (TW) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483133080"}