Tuesday's IBD 50 Stocks To Watch pick, financial leader Interactive Brokers, is approaching a new buy point and new highs on the stock market today. That makes Interactive Brokers one of the best stocks to watch right now.
Greenwich, Conn.-based Interactive Brokers provides automated trade execution services as well as custody services for stocks, commodities and foreign exchange across several countries. Individual investors, hedge funds, financial advisors and brokers are among those who use the platform.
On Jan. 16, Interactive Brokers announced fourth-quarter adjusted earnings of $1.52 per share, up nearly 17% from last year but just missing FactSet expectations of $1.53 per share. Revenue increased 17% to $1.139 billion, just beating forecasts of $1.137 billion.
Interactive Brokers Stock Eyes New Entry
After a more-than-25% gain from an 89.72 cup-with-handle entry, Interactive Brokers stock is trading tightly, according to IBD MarketSurge chart analysis. The current three-weeks-tight pattern offers an add-on entry at 112.50, the highest point in the pattern. A decisive move past that level would place the stock in a new buy area, offering investors a chance to pick up shares. The buy zone extends 3% to 115.88.
The three-weeks-tight pattern forms when a stock closes within 1.5% of the prior week's close for two straight weeks. Volume will be quiet during this period as the stock consolidates after breaking out of its base. This signals institutional investors are comfortable with the stock's advance and could be set to propel shares even higher.
Following big price gains since November 2023, Interactive Brokers stock shows a 98 out of a best-possible 99 IBD Composite Rating, according to IBD Stock Checkup. That makes it one of the best stocks to watch.
On another bullish note, the relative strength line for Interactive Brokers nearly hit new highs in recent weeks and is holding up well amid the recent market pause, confirming the stock as a market leader. That's a sign of strong stock market outperformance. Remember, the RS line measures a stock's price performance vs. the S&P 500 and is the blue line plotted on IBD Charts.
Best Stocks To Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Arista Networks | 292.66 | Flat base | |
| Netflix | 579.64 | Tight area | |
| Cloudflare | 102.30 | Tight area |
Source: IBD Data As Of March 26, 2024
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
