Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score evaluates a company's financial health and future outlook, analyzing projected earnings and sales for sustainable growth [5] - The Momentum Score capitalizes on price trends, using factors like weekly price changes to identify high-momentum stocks [6] - The VGM Score combines all three Style Scores, providing a comprehensive rating based on value, growth, and momentum [7] Zacks Rank and Style Scores Interaction - The Zacks Rank, based on earnings estimate revisions, has shown a strong historical performance, with 1 (Strong Buy) stocks yielding an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated, making it essential to utilize Style Scores to narrow down choices [9] - For optimal returns, stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended [10] - Stocks rated 4 (Sell) or 5 (Strong Sell) should be avoided, even if they have high Style Scores, due to their declining earnings forecasts [11] Company Spotlight: Robinhood Markets, Inc. - Robinhood Markets, Inc. is a financial services company offering commission-free trading in various financial instruments, aiming to democratize finance [12] - Currently rated 3 (Hold) by Zacks, Robinhood has a VGM Score of B and a Growth Style Score of A, indicating strong growth potential with a forecasted year-over-year earnings growth of 21% [13] - The company has seen positive revisions in earnings estimates, with the Zacks Consensus Estimate increasing by $0.16 to $2.48 per share for fiscal 2026 [13] - With a solid Zacks Rank and favorable Style Scores, Robinhood is positioned as a potential investment opportunity [14]

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in short-term investing, highlighting that while trends can be profitable, ensuring their longevity is crucial for success [1][2]. Group 1: Stock Performance - Interactive Brokers Group, Inc. (IBKR) has shown a solid price increase of 6.8% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - Over the last four weeks, IBKR's stock price has increased by 16.1%, suggesting that the upward trend is still intact [5]. - Currently, IBKR is trading at 92.8% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - IBKR holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting strong optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors seeking stocks with upward momentum supported by strong fundamentals [3]. - In addition to IBKR, there are other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Nasdaq (NDAQ) - Nasdaq currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook based on historical performance metrics [3] Performance Metrics - Over the past week, Nasdaq shares increased by 1.91%, outperforming the Zacks Securities and Exchanges industry, which rose by 1.24% [5] - In the last month, Nasdaq's price change was 10.2%, significantly higher than the industry's 4.97% [5] - Over the past quarter, Nasdaq shares rose by 9.86%, and over the last year, they increased by 25.05%, while the S&P 500 only moved 3.01% and 17.28% respectively [6] Trading Volume - Nasdaq's average 20-day trading volume is 3,828,513 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 5 earnings estimates for Nasdaq have been revised upwards, increasing the consensus estimate from $3.40 to $3.43 [9] - For the next fiscal year, 4 estimates have also moved higher, with no downward revisions noted [9] Conclusion - Considering the strong performance metrics and positive earnings outlook, Nasdaq is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Analyzes projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [4] Momentum Score - Evaluates price trends and earnings outlook changes to identify favorable buying opportunities for high-momentum stocks [5] VGM Score - Combines all three Style Scores to provide a comprehensive rating based on value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988 [7] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Stock Highlight: Robinhood Markets, Inc. - Robinhood Markets, Inc. is a financial services company offering commission-free trading in various assets, aiming to democratize finance [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Momentum Style Score of A, indicating strong performance potential [12] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.21 to $1.76 per share, with an average earnings surprise of +19.5% [12][13]

Core Insights - Interactive Brokers Group, Inc. reported strong second-quarter results, with earnings per share of 51 cents, surpassing the analyst consensus estimate of 45 cents [1] - The company's quarterly revenue reached $1.48 billion, exceeding the Street estimate of $1.36 billion and showing an increase from $1.23 billion in the same period last year [1] Financial Performance - Commission revenue rose by 27% to $516 million, driven by higher customer trading volumes [4] - Customer trading volumes increased significantly, with stocks up 31%, options up 24%, and futures up 18% [4] - Net interest income grew by 9% to $860 million, attributed to higher average customer credit balances and increased securities lending activity [4] Customer Metrics - The number of customer accounts surged by 32% to 3.87 million [4] - Customer equity increased by 34% to $664.6 billion [4] - Total Daily Average Revenue Trades (DARTs) rose by 49% to 3.55 million [4] - Customer credits increased by 34% to $143.7 billion [4] - Customer margin loans grew by 18% to $65.1 billion [4] Stock Performance - Following the earnings release, Interactive Brokers' stock rose by 3.15% to $61.39 in extended trading [3]

Group 1 - Interactive Brokers Group Inc (NASDAQ:IBKR) shares are down 2.8% at $141.95, marking the lowest level since October, amidst market volatility due to tariff updates and selloff speculation [1] - The stock is trading near long-term support at its 320-day moving average, which is historically a bullish trendline, and is within 0.75 of the trendline's 20-day average true range (ATR) for the first time in at least eight of the last ten trading days [2] - IBKR has shown a 27.8% year-over-year gain and has outperformed options traders' volatility expectations, reflected in its Schaeffer's Volatility Scorecard (SVS) of 88 out of 100 [3] Group 2 - In the past three years, after similar trading conditions, IBKR has averaged a 10.4% gain one month later, indicating potential bullish momentum [3]

Core Investment Insights - American Express, SoFi Technologies, and Berkshire Hathaway are identified as promising long-term investments for retail investors starting with a modest amount of cash [1][2] American Express - American Express operates a different business model compared to Visa and Mastercard, as it issues its own cards and operates its own bank [4][5] - The company targets lower-risk, higher-income customers, which allows it to maintain a smaller market share intentionally [5] - American Express's business model is insulated from interest rate fluctuations, benefiting from higher interest rates through its banking segment [6] - Analysts project a compound annual growth rate (CAGR) of 8% for revenue and 13% for earnings per share (EPS) from 2024 to 2027 [7] - The stock is currently valued at 18 times this year's earnings and offers a forward yield of 1.2% [8] SoFi Technologies - SoFi aims to disrupt traditional banks by providing a comprehensive range of digital financial services, including personal loans, credit cards, and stock trading [9] - The company has experienced rapid growth, with its member base increasing from 2.52 million in 2020 to 10.13 million in 2024 [10] - SoFi became profitable on a GAAP basis in 2024, despite facing challenges from a federal student loan freeze and rising interest rates [11] - Analysts expect SoFi's revenue and EPS to grow at a CAGR of 19% and 24%, respectively, from 2024 to 2027 [11] - The stock is valued at 49 times this year's earnings but appears cheaper at 14 times its forward adjusted EBITDA [12] Berkshire Hathaway - Berkshire Hathaway provides a diversified investment opportunity, owning various insurance companies and holding significant stakes in major financial institutions [13] - The company has consistently outperformed the S&P 500 since Warren Buffett acquired it in 1965, thanks to its scale and diversification [14] - Berkshire Hathaway's operating earnings, which exclude capital gains or losses, grew at a CAGR of 16% from 1994 to 2024, with expectations for continued growth [15]