Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronic brokerage operator Interactive Brokers Group (Nasdaq: IBKR ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Interactive Brokers' business and see what CAPS investors are saying about the stock right now.
Interactive Brokers facts
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Headquarters (Founded)
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Greenwich, Conn. (1977)
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Market Cap
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$757.1 million
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Industry
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Specialty finance
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Trailing-12-Month Revenue
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$1.55 billion
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Management
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Founder/CEO Thomas Peterffy (since 2006)
CFO Paul Brody (since 2003)
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Trailing-12-Month Return on Equity
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14.1%
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Cash / Debt
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$863.8 million / $312.9 million
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Competitors
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E*TRADE Financial (Nasdaq: ETFC )
Goldman Sachs (NYSE: GS )
Morgan Stanley (NYSE: MS )
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CAPS Members Bullish on IBKR Also Bullish on
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General Electric (NYSE: GE )
Activision Blizzard (Nasdaq: ATVI )
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CAPS Members Bearish on IBKR Also Bearish on
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Citigroup (NYSE: C )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 99% of the 171 All-Star members who have rated Interactive Brokers believe the stock will outperform the S&P 500 going forward. These bulls include FAOFool and stan8331, both of whom are ranked in the top 4% of our community.
Earlier this summer, FAOFool optimistically wrote that Interactive Brokers "will rebound with the rest of the economy and the financial sector." Our All-Star concludes: "Recent weakness provides a great time to get in, and their platform and solid balance sheet provide great long-term stability while waiting for the tide to turn."
In an earlier pitch, stan8331 expands on the stock from a client point-of-view:
I've been [an Interactive Brokers] customer for a few months now and I see tremendous potential for growth. ... Their ultra-low transaction cost structure ($1each for small stock trades, minimum 10 per month) offers me much more flexibility for my two year-old IRA than I would have with any other broker. Because annual IRA contributions are limited by the IRS, having such a low cost per trade makes it easy to take profits when desired and keep an optimal level of cash available to take advantage of new buying opportunities in a highly volatile market. ...
When more folks begin to realize -- hopefully with the help of much better [Interactive Brokers] marketing -- that you don't need to be a day trader to benefit from such a low cost per trade, I see a huge upside potential for the company. Even without that paradigm change, it still looks like a very good company as-is.
What do you think about Interactive Brokers, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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