Why Interactive Brokers Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronic brokerage operator Interactive Brokers Group has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Interactive Brokers and see what CAPS investors are saying about the stock right now.

Interactive Brokers facts

 

 

Headquarters (founded)

Greenwich, Conn. (1977)

Market Cap

$693.3 million

Industry

Specialized finance

Trailing-12-Month Revenue

$1.1 billion

Management

Founder/Chairman Thomas Peterffy

CFO Paul Brody

Return on Equity (average, past 3 years)

10.5%

Cash/Debt

$21.9 billion/$2.0 billion

Dividend Yield

2.8%

Competitors

Charles Schwab

E*TRADE Financial

TD Ameritrade


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 643 members who have rated Interactive Brokers believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, yieldideas, succinctly summed up the bull case for our community:

Interactive Brokers is an excellent run company, with high profit margins, operating in a sector that has had some challenges in the last couple of years. IB is known for its highly automated systems which helps keep pre-tax profit margins consistently higher than its competitors. As the Baby Boomer Generation which tends to be more "do-it-yourself" is retiring, some assets will shift out of 401Ks and into independent brokers such as TD Ameritrade, Schwab, Fidelity, and to some extent to Interactive Brokers.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Interactive Brokers may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it The Only Stock You Need to Profit from the NEW Technology Revolution. We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Interactive Brokers Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Interactive Brokers and TD Ameritrade. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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