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.
Greenwich, Conn. (1977)
Founder/Chairman Thomas Peterffy
CFO Paul Brody
Return on Equity (average, past 3 years)
$21.9 billion/$2.0 billion
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.
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.
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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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