Interactive Brokers (IBKR) Soars 16.1%: Is Further Upside Left in the Stock?

Interactive Brokers Group, Inc. (IBKR Quick QuoteIBKR – Free Report) shares rallied 16.1% in the last trading session to close at $170.72. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 13.7% loss over the past four weeks.

Interactive Brokers stock surged, driven by a massive jump in the broad markets. The jump was fueled by President Donald Trump’s announcement of a 90-day tariff pause for the non-retaliating nations. This cheered the investors, driving the IBKR stock higher.

This company is expected to post quarterly earnings of $1.88 per share in its upcoming report, which represents a year-over-year change of +14.6%. Revenues are expected to be $1.41 billion, up 17.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Interactive Brokers, the consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on IBKR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

Interactive Brokers is part of the Zacks Financial – Investment Bank industry. Bank of America (BAC Quick QuoteBAC – Free Report) , another stock in the same industry, closed the last trading session 6.1% higher at $37.15. BAC has returned -11.6% in the past month.

Bank of America’s consensus EPS estimate for the upcoming report has changed -1.4% over the past month to $0.81. Compared to the company’s year-ago EPS, this represents a change of -2.4%. Bank of America currently boasts a Zacks Rank of #3 (Hold).