Here’s what could help Interactive Brokers Group, Inc. (IBKR) maintain its recent pricing strength
MMost of us have heard the saying “the trend is your friend”. And this is undeniably the key to success when it comes to investing or trading in the short term. But it is not easy to ensure the sustainability of a trend and to profit from it.
Often times, the direction of a stock’s price movement will reverse quickly after taking a position, causing investors to experience a short-term capital loss. So it’s important to make sure that there are enough factors – such as strong fundamentals, positive revisions to earnings estimates, etc. – which could maintain the momentum of the action.
Our “Recent Price Strength” screen, which is created on a single short term trading strategy, could be of great help in this regard. This predefined screen makes it very easy to select stocks that have sufficient fundamental strength to maintain their recent uptrend. Also, the screen only passes stocks that are trading in the upper portion of their 52 week high-low range, which is usually an indicator of an uptrend.
Several stocks have gone on screen and Interactive Brokers Group, Inc. (IBKR) is one of them. Here are the main reasons why this stock is a solid choice for a “trendy” investment.
A strong price increase over a 12-week period reflects the continued willingness of investors to pay more for a stock’s potential rise. IBKR is fairly well positioned in this regard, gaining 23% over this period.
However, it is not enough to just watch the price development for about three months, as it does not reflect any trend reversals that could have occurred in a shorter period of time. It is important for a potential winner to maintain the price trend. A 3.5% price increase over the past four weeks ensures that the trend is still in place for this company’s stock.
Additionally, IBKR is currently trading at 83.5% of its 52 week high-low range, suggesting that it may be on the verge of a breakout.
Looking at the fundamentals, the stock currently has a Zacks Rank # 2 (Buy), meaning it is in the top 20% of the 4,000 stocks we rank based on trends in earnings estimate revisions and earnings estimates. BPA surprises – the key factors that impact short-term price movements of a stock.
The Zacks Rank stock rating system, which uses four factors related to earnings estimates to rank stocks into five groups, ranging from Zacks Rank # 1 (Strong Buy) to Zacks Rank # 5 (Strong Sell), has an impressive track record. externally audited. record high, with Zacks Rank # 1 stocks generating an average annual return of + 25% since 1988. You can see the full list of Zacks Rank # 1 (strong buy) stocks today here >>>>
Another factor that confirms the fundamental strength of the business is its average broker recommendation # 1 (strong buy). This indicates that the brokerage community is very optimistic about the short-term price performance of the stock.
So the IBKR’s price trend may not be reversing anytime soon.
In addition to IBKR, several other stocks are currently going through our “Recent Price Strength” screen. You can consider investing in them and start looking for the most recent stocks that match these criteria.
This isn’t the only screen that might help you find your next winning stock pick. Depending on your personal investing style, you can choose from over 45 Zacks Premium displays that are strategically created to beat the market.
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Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.