Market Overview - September is historically the worst-performing month for stocks, with an average negative return over the past 98 years [2] - The two months leading up to the presidential election have seen an average decline of 5.8% in the S&P 500 since 2008 [3] Economic Indicators - Recent economic data shows a softening economy, with the jobless rate rising to 4.3% and hiring slowing down [4] - The ISM manufacturing index has shrunk for five consecutive months, indicating a deep slump in factory activity [4] Investment Strategy - Investors are advised to focus on low-beta stocks, which are less volatile and have solid upside potential [5] - Low-beta stocks with positive earnings estimate revisions are considered to outperform the broader market [5] Stock Highlights - **ServiceNow, Inc. (NOW)**: Beta of 0.98, Zacks Rank 2, expected earnings growth rate of 27.6%, shares up 18.4% year-to-date [6][10] - **Interactive Brokers Group, Inc. (IBKR)**: Beta of 0.80, Zacks Rank 2, expected earnings growth rate of 18.4%, shares up 52.1% year-to-date [7][9] - **Pilgrim's Pride Corporation (PPC)**: Beta of 0.82, Zacks Rank 1, expected earnings growth rate of 183.4%, shares up 64.4% year-to-date [10]

Interactive Brokers Group, Inc. (IBKR) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this company have returned +9.2%, compared to the Zacks S&P 500 composite's +6.2% change. During this period, the Zacks Financial - Investment Bank industry, which Interactive Brokers falls in, has gained 8%. The key question now is: What could be the stock's future dir ...

Core Insights - Interactive Brokers Group, Inc. (IBKR) reported strong performance metrics for its Electronic Brokerage segment in August 2024, highlighting a significant increase in client Daily Average Revenue Trades (DARTs) [1] Performance Metrics - Total client DARTs for August reached 2,712,000, marking a 40.4% increase from August 2023 but a 1.6% decrease from July 2024 [2] - Cleared Average DARTs per customer account was 198 for August 2024, up 7.6% year-over-year but down 3.9% from July 2024 [2] - Total customer accounts grew by 29.3% year-over-year and 2.2% month-over-month to 3.1 million, with net new accounts increasing by 58.4% from August 2023 but declining 6.6% sequentially [2] Options and Futures Contracts - Total options contracts traded in August 2024 were 111.7 million, up 22.6% year-over-year but down 5.8% from the previous month [2] - Futures contracts increased by 8.4% year-over-year and 5.4% month-over-month to 20.1 million [2] Client Equity and Balances - Client equity at the end of August 2024 was $515.3 billion, reflecting a 36.5% year-over-year growth and a 1.1% increase from July 2024 [3] - Client credit balances stood at $112.1 billion, up 13.2% from August 2023 and 2.7% from July 2024 [3] - Customer margin loan balance was $54.9 billion, increasing 30.4% year-over-year but decreasing 2.1% from the last month [3] Stock Performance - Year-to-date, IBKR shares have surged 53.7%, significantly outperforming the industry growth of 16.7% [4] - IBKR currently holds a Zacks Rank 1 (Strong Buy), indicating strong market performance [4] - Comparatively, The Charles Schwab Corporation (SCHW) and LPL Financial Holdings Inc. (LPLA) are expected to release their monthly performance metrics soon, with SCHW holding a Zacks Rank 4 (Sell) and LPLA a Zacks Rank 3 (Hold) [4]

Company Performance - Interactive Brokers Group, Inc. (IBKR) closed at $126.32, reflecting a -0.63% change compared to the previous day, underperforming the S&P 500's 0.6% loss [1] - The stock has increased by 6.86% over the past month, outperforming the Finance sector's gain of 2.41% and the S&P 500's gain of 3.15% [1] - Analysts expect IBKR to report earnings of $1.71 per share, indicating a year-over-year growth of 10.32%, with projected revenue of $1.25 billion, a 9.13% increase from the same quarter last year [1] Full Year Estimates - For the full year, earnings are projected at $6.81 per share and revenue at $4.98 billion, representing changes of +18.43% and +14.74% respectively from the previous year [2] - Recent changes in analyst estimates for IBKR are seen as indicators of the company's business outlook, with positive revisions suggesting optimism [2] Zacks Rank and Valuation - IBKR currently holds a Zacks Rank of 1 (Strong Buy), with an average annual return of +25% for 1 stocks since 1988 [3] - The Forward P/E ratio for IBKR is 18.68, which is a premium compared to the industry average of 16.6 [3] - The PEG ratio for IBKR stands at 1.13, aligning with the Financial - Investment Bank industry's average PEG ratio of 1.13 [3] Industry Overview - The Financial - Investment Bank industry is part of the Finance sector and has a Zacks Industry Rank of 103, placing it in the top 41% of over 250 industries [4] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

Interactive Brokers Group, Inc.’s (IBKR) clients are now allowed to trade stocks on one of the largest stock exchanges in Southeast Asia, Bursa Malaysia. The brokerage firm’s clients will be able to trade Malaysian Ringgit-denominated equities and exchange traded funds (ETFs), along with global stocks, options, futures, currencies, bonds and funds from a single unified platform.By providing access to Malaysia-denominated equity products, IBKR will be able to expand the breadth of global investment products ...

Core Viewpoint - Brokerage recommendations, particularly for Interactive Brokers Group, Inc. (IBKR), show a strong positive bias, with an average brokerage recommendation (ABR) of 1.22, indicating a consensus leaning towards "Strong Buy" [1][2] Group 1: Brokerage Recommendations - The current ABR for IBKR is 1.22, with eight out of nine brokerage recommendations classified as "Strong Buy," representing 88.9% of total recommendations [1] - Despite the strong ABR, studies indicate that brokerage recommendations often lack success in guiding investors towards stocks with the highest price increase potential due to analysts' vested interests [2][3] - Analysts employed by brokerage firms tend to be overly optimistic, leading to a higher frequency of favorable ratings compared to their research support [5] Group 2: Zacks Rank Comparison - Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which are more reliable indicators of near-term stock price movements [3][4] - The Zacks Consensus Estimate for IBKR has increased by 0.7% over the past month to $6.81, reflecting growing optimism among analysts regarding the company's earnings prospects [7] - The Zacks Rank for IBKR is 1 (Strong Buy), indicating a strong alignment with the positive sentiment reflected in the ABR [7]

Company Performance - Interactive Brokers Group, Inc. (IBKR) closed at $124.12, marking a +0.62% move from the previous day, outperforming the S&P 500 which lost 0.89% [1] - Over the past month, shares of IBKR gained 4.43%, surpassing the Finance sector's gain of 1.92% and the S&P 500's gain of 2.17% [1] Upcoming Earnings - The upcoming earnings release is anticipated, with a forecasted EPS of $1.71, reflecting a 10.32% increase from the same quarter last year [1] - Revenue is expected to be $1.25 billion, indicating a 9.13% increase compared to the same quarter of the previous year [1] Annual Forecast - For the entire year, Zacks Consensus Estimates forecast earnings of $6.81 per share and revenue of $4.98 billion, representing changes of +18.43% and +14.74% respectively compared to the previous year [2] Analyst Projections - Recent shifts in analyst projections for IBKR should be monitored, as positive estimate revisions indicate analyst optimism about the company's business and profitability [2] - Changes in estimates are directly related to upcoming stock price performance, with the Zacks Rank system designed to capitalize on this phenomenon [2] Zacks Rank and Valuation - IBKR currently holds a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate moving 0.74% higher over the past month [3] - The company is traded at a Forward P/E ratio of 18.13, which is a premium compared to the industry's average Forward P/E of 16.23 [3] - IBKR has a PEG ratio of 1.1, aligning with the Financial - Investment Bank industry's average PEG ratio of 1.1 [3] Industry Overview - The Financial - Investment Bank industry is part of the Finance sector and currently holds a Zacks Industry Rank of 140, placing it in the bottom 45% of all industries [4] - The Zacks Industry Rank measures the strength of individual industry groups, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [4]

Stock Performance - Interactive Brokers' shares returned +4.4% over the past month, outperforming the Zacks S&P 500 composite's +2.2% and the Zacks Financial - Investment Bank industry's +1.2% [1] Earnings Estimates - Current quarter earnings estimate is $1.71 per share, representing a year-over-year change of +10.3%, with a +0.9% revision over the last 30 days [3] - Current fiscal year earnings estimate is $6.81, indicating a year-over-year change of +18.4%, with a +0.7% revision over the last 30 days [3] - Next fiscal year earnings estimate is $6.94, showing a +2% change from the previous year, with a +1% revision over the past month [3] Revenue Growth - Current quarter consensus sales estimate is $1.25 billion, indicating a year-over-year change of +9.1% [5] - Current fiscal year revenue estimate is $4.98 billion, showing a +14.7% change [5] - Next fiscal year revenue estimate is $5.13 billion, indicating a +3% change [5] Recent Results - Last reported revenues were $1.23 billion, representing a year-over-year change of +23% [6] - Last reported EPS was $1.76, compared to $1.32 a year ago [6] - Reported revenues were -2.7% below the Zacks Consensus Estimate of $1.26 billion, while EPS surprise was +4.14% [7] - The company surpassed consensus EPS estimates three times and revenue estimates three times over the last four quarters [7] Valuation - Interactive Brokers is graded D on the Zacks Value Style Score, indicating it is trading at a premium to its peers [9] Analyst Rating - Interactive Brokers is rated Zacks Rank 2 (Buy), suggesting potential outperformance in the near term [4][10]

Core Viewpoint - Interactive Brokers Group (IBKR) has shown exceptional performance in 2024, with shares rising 41.8%, significantly outperforming the industry and key competitors [1][11]. Group 1: Stock Performance - IBKR's stock has surged 41.8% year-to-date, compared to an 8.8% increase in the industry and a 12.2% rise in the Zacks S&P 500 composite [1]. - In contrast, competitors like Charles Schwab (SCHW) and LPL Financial (LPLA) have seen declines of 9.2% and 12.4%, respectively [1]. - The stock is currently trading above its 200-day moving average, indicating a bullish trend and positive market sentiment [2]. Group 2: Financial Performance - The first half of 2024 saw an 18% increase in total revenues on a GAAP basis, driven by strong growth in net interest income and margin loans, which reached $55 billion [2][5]. - IBKR maintains a low compensation expense relative to net revenues at 12% in the first half of 2024, attributed to its technological advancements [5]. - The company reported a total client Daily Average Revenue Trades (DARTs) of 2,756,000 in July, marking a 38.4% increase from July 2023 [5]. Group 3: Strategic Initiatives - IBKR is expanding its global presence and product offerings, recently launching ForecastEx LLC, allowing clients to trade Forecast Contracts on economic data and climate indicators [6]. - The company aims to enhance its market share through the introduction of new products and services in the online brokerage space [6]. Group 4: Valuation and Growth Potential - IBKR's current price-to-tangible book (P/TBV) ratio stands at 0.84, significantly lower than the industry average of 4.72, indicating an attractive buying opportunity [7][9]. - The Zacks Consensus Estimate projects earnings growth of 18.4% for 2024 and 2% for 2025, with positive estimate revisions for both years [9][10]. - The company is recognized for its strong fundamentals and resilience in the electronic brokerage sector, making it a compelling investment option [11].

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Interactive Brokers Group, Inc. (IBKR) .Interactive Brokers currently has an average brokerage ...