When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. On Monday, the Relative Strength (RS) Rating for Interactive Brokers got an upgrade from 69 to 75 — a welcome improvement.
Additionally, Interactive Brokers continues to trade near its all-time high 95.59, set on Sept. 11.
Interactive Brokers Builds Cup Base
Meanwhile, Interactive Brokers stock is building a cup-without-handle pattern with a 95.59 entry. See if it can clear the breakout price in heavy trade. At the bottom of the cup formation, it dropped to an intraday low 72.60 on Nov. 29. On Monday IBKR closed at 90.35, down for the day.
The 75 RS Rating means that Interactive Brokers stock is in the top quartile of all stocks for price performance over the past year. It's an impressive bump, although CAN SLIM investors would like to see a bit more. The best stocks typically have an RS Rating above 80 in the early stages of their moves. See if Interactive Brokers can continue to show renewed price strength and clear that threshold.
Still, the Greenwich, Conn.-based broker services company boasts an outstanding 97 Earnings Per Share Rating out of 99. Interactive Brokers stock also has an impressive 92 Composite Rating and an A SMR Rating (sales + profit margins + return on equity) on an A-to-E basis with A tops.
Additionally, the B+ Accumulation/Distribution Rating on an A+ to E scale shows that big funds like ETFs and mutual funds are avid buyers of Interactive Brokers stock.
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Interactive Brokers provides direct trade execution and clearing services to sophisticated investors, active traders and institutions globally.
Generally Strong Sales With One Blip
Last quarter Interactive Brokers reported 17% earnings growth, to $1.52 per share, while sales fell 25% on a year-over-year basis to $1.14 billion. The dip could be an anomaly. The prior three quarters its revenue grew 64%, 52% and 45%.
EPS growth rate has shrunk in tandem with its sales, although it remained profitable. Over the last four quarters it posted EPS gains of 65% 57% and 44% before the 17% rise last quarter. Look for the company to return to strong sales and profit growth this quarter.
Interactive Brokers stock holds the No. 7 rank among its peers in the 32-stock Finance-Investment Banking/Brokers industry group. Brazil brokerage XP and Minneapolis-based Ameriprise Financial are among the group's highest-rated stocks.
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