Interactive Brokers hit an all-time high last month amid strong double-digit and sometimes triple-digit sales and profit growth. On Wednesday, the Relative Strength (RS) Rating for Interactive Brokers stock was upgraded from 70 to 73 — a welcome improvement. But that is still below the 80 or higher score CAN SLIM investors prefer to see.
Interactive Brokers Stock Closing On Milestone
The market's biggest winners typically have an RS Rating north of 80 in the early stages of their moves. See if Interactive Brokers can continue to rebound and hit that benchmark. However, some of its other ratings really shine.
Interactive Brokers provides direct access market trade execution and clearing services to investors and institutions globally. The 46-year old company says it has over $13.3 billion in equity capital.
Among its other ratings the Greenwich, Conn.-based company has a 94 Composite Rating out of 99. Its Earnings Per Share Rating is a near-best 98. Additionally, its SMR Rating (sales + profit margins + return on equity) of A is best-possible on an A-to-E scale, reflecting strong fundamentals.
However, Interactive Brokers stock has an E Accumulation/Distribution Rating on an A+ to E scale with A+ best. The E rating shows that institutional investors such as mutual funds and insurance company funds are selling more shares than buying. Perhaps the reluctance stems from its shrinking, although still robust sales growth this past year.
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Interactive Brokers reported 44% earnings growth to $1.55 per share last quarter, while sales grew 45% to $1.15 billion. The prior three quarters its EPS rose 57%, 65% and 57%. During that period its revenue grew 131%, 64% and 52%.
Hit All-Time High In October Then Snoozed
Interactive Brokers stock dropped to a 53.42 low on July 15, 2022. It turned up from there, rising to an all-time high 95.59 on Sept. 11 this year. From there it's consolidated. It gapped down 4.1% on Oct. 17 on lower earnings than the Street expected. Look for IBKR to form a pattern with a fresh buy point.
Interactive Brokers stock earns the No. 5 rank among its peers in the 33-stock Finance-Investment Banking/Brokers industry group. Freedom Holding and LPL Financial Holdings are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique Relative Strength Rating identifies share price performance with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the trailing 52 weeks compares to all the other stocks in our database.
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