IBKR
📈 Interactive Brokers benefited significantly from rising interest rates, boosting its net interest margin (NIM) and driving recent stock performance.
밸 The stock trades at a forward P/E of 22 with expected EPS growth around 15%, but its performance is closely tied to the interest rate cycle.
⏳ The analysis suggests the best time to invest in such companies is when the Fed is raising rates, implying caution now as the rate environment might shift.
@bernardodegarcia:
“Interactive Brokers too, what’s up? Interactive Brokers, I don’t know, Jack. I mean, you’re trading at a forward P/E of 22. It has an approximate growth of 15% in earnings per share. Ah, it could be quite continuous. The big problem with Interactive Brokers is that, let’s say, there was a small disparity when… that’s why the shares are falling, right? Meaning, if you look, Interactive Brokers shares spent all this time, okay, since COVID… COVID we were at $53… well, they went from $53 to, I don’t know, until last year, okay? So, in practically 4 years, they went up what is that, 80%? Not bad at all, okay? But the big jump was here, right? From practically $100 to $236. I mean, it was spectacular. One of the main reasons is the same reason why banks also had these tremendous rises, okay? Because of this spread between the money you’re giving for the cash you have on hand and the, let’s say, the money you’re asking for the money they’re asking you for. I mean, the net interest margin, called NIM, okay? So, ah, there is a right moment, in my opinion, to invest in this type of company, and it’s when the Fed is obviously raising interest rates. Sometimes it takes longer, sometimes less. And there’s another type of company to invest in that will benefit when the Fed starts cutting interest rates, and I think those will be the REITs.”
Watch the exact part of the video where @bernardodegarcia talks about Interactive Brokers here:
Watch the video on YouTube
Read more articles analyzing Interactive Brokers (IBKR) at the following link. IBKR stock.
