Interactive Brokers Group, Inc. IBKR shares have risen 57% in the past year despite the recent run-off because of uncertainty related to Trump’s tariff plans and their economic implications. The stock has also outperformed the industry and fared better than its close peers — Charles Schwab SCHW and Tradeweb Markets Inc. TW — in the same time frame.

IBKR One-Year Price Performance
 

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Interactive Brokers has been benefiting from heightened market volatility and a rise in client activity. The company has witnessed an increase in new account openings and Total Client daily average revenue trades (DARTs) in the first three months of 2025 on a year-over-year basis. Likewise, Schwab and Tradeweb are likely to have recorded a rise in new account openings and trading volume in the first quarter of 2025.

Going forward, the momentum is expected to continue as markets and investors try to decipher the impact of tariffs on various sectors. Thus, IBKR is likely to witness a rise in total client DARTs.

IBKR’s Global Exposure Through Product Diversification

IBKR has been taking several steps to enhance its presence globally. On Tuesday, the company launched Forecast Contracts in Canada, allowing investors to trade on the outcomes of several events impacting markets. Earlier, in February, IBKR announced the expansion of its offering of Stocks and Shares Investment Savings Accounts with the addition of mutual funds in the U.K. This would allow investors to access a wide range of investment products in a tax-efficient savings vehicle along with advanced trading platforms, low fees and global diversification. 

Last November, IBKR launched Plan d’Epargne en Actions accounts to boost its offerings for its French clients. Also, the launch of IBKR GlobalTrader has enabled investors worldwide to trade stocks through mobile applications.

The company was one of the first brokers to introduce Overnight Trading on U.S. stocks and ETFs nearly 24 hours a day, five days a week. IBKR Lite has enabled investors to trade commission-free. Further, it launched cryptocurrency trading via Paxos Trust Company, charging lower commissions compared to other crypto exchanges. The introduction of IBKR Desktop, the next-generation desktop trading application for Windows and Mac, marks a new chapter for innovation.

The company’s technological superiority, combined with easier regulations to improve product velocity, is likely to help its net revenues through higher client acquisitions.

Interactive Brokers’ Technological Excellence

Interactive Brokers’ technological superiority remains one of its strongest aspects. The company processes trades in stocks, futures, options and forex on more than 150 exchanges across several countries and currencies.
 
IBKR’s compensation expense relative to net revenues (11.1% in 2024) remains below its industry peers due to its superior technology. Further, the company has been emphasizing developing proprietary software to automate broker-dealer functions, leading to a steady rise in revenues. Total net revenues witnessed a compound annual growth rate (CAGR) of 21.8% over the last five years (2019-2024).
 
Net revenues are expected to improve further in the quarters ahead, given the solid DART numbers and robust trading backdrop driven by higher market participation.

IBKR’s Sales Estimates
 

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IBKR Shares are Inexpensive

IBKR shares appear inexpensive relative to the industry. The company is currently trading at the 12-month trailing price-to-tangible book (P/TB) of 1.15X, well below the industry’s 2.69X. 

Price-to-Tangible Book Ratio (TTM)
 

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Also, the stock is trading below its peers, Tradeweb and Schwab. At present, TW and SCHW’s 12-month trailing P/TB TTM are 16.23X and 7.40X, respectively.

From a valuation perspective, Interactive Brokers shares present a compelling buying opportunity. The stock is still undervalued as the market has not yet fully recognized or priced the company’s growth prospects.

Analyst Sentiments Bullish for Interactive Brokers

Over the past 60 days, the Zacks Consensus Estimate for 2025 and 2026 earnings has been revised upward to $7.12 and 8.14, respectively.

Estimate Revision Trend
 

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The projected figures imply a rise of 1.3% and 14.2% for 2025 and 2026, respectively.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Parting Thoughts on Interactive Brokers Stock

Interactive Brokers remains well-positioned for growth in the current volatile operating environment. Also, rapidly evolving trends will benefit the company’s revenues and expand its market share. The company’s strong technological capabilities and diversified product offerings enhance its global reach, supporting long-term growth. 

Further, positive analyst sentiment adds a layer of optimism. IBKR presents an attractive opportunity for value investors, as the stock trades at a discount. 

At present, IBKR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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