Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of electronic broker and market maker Interactive Brokers Group (NASDAQ: IBKR ) climbed 10% on Wednesday after its quarterly results topped Wall Street expectations.
So what: The stock had pulled back sharply in January on concerns over slowing growth, but today's Q1 results -- income jumped 189% on a revenue surge of 64% -- are quickly easing those worries. In fact, Interactive's customer accounts grew 16% while its pretax profit margin expanded to 61% (versus just 38% in the year-ago period), giving analysts plenty of good vibes over its profitability going forward.
Now what: Don't expect Interactive's operating momentum to slow anytime soon. "With the growing customer asset base, we believe we are well positioned to benefit from a rise in interest rates," said CFO Paul Brody in a conference call with analysts. "Based on current balances, we estimate that a general rise in overnight interest rates of 25 basis points would produce an additional $55 million in net interest income annually. Further increases in rate would produce smaller gains, because the interest we pay to our customers is tied to benchmark rates versus narrow spreads." More importantly, with Interactive shares still off about 10% from its 52-week highs and sporting a near-2% dividend yield, there might be some decent upside left to bet on that outlook.
Three stocks poised to be multibaggers
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multibagger stocks like Netflix time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.