INTERACTIVE BROKERS GRO-CL A (NASDAQ:IBKR) Identified by High Growth Momentum and Minervini Trend Screen

INTERACTIVE BROKERS GROUP-CL A (NASDAQ:IBKR) has been identified by a systematic screening process that joins Mark Minervini's strict Trend Template with a High Growth Momentum (HGM) filter. This two-part method finds securities that are in strong technical uptrends and also show the fundamental earnings and sales momentum found in market-leading growth stocks. The system favors stocks showing better relative strength, properly ordered moving averages, and closeness to new highs, while also needing improving financial performance that draws institutional investment and supports continued price gains.

Technical Strength and the Trend Template

The foundation of the Minervini strategy is the Trend Template, a set of firm technical rules made to filter for stocks in a confirmed Stage 2 uptrend. INTERACTIVE BROKERS GROUP-CL A shows a clear match with these rules, which is a main reason for its selection.

• Moving Average Alignment: The stock's price structure shows the bullish order important to the Trend Template.

  • The current price of $71.62 trades well above the rising 50-day ($66.69), 150-day ($57.89), and 200-day ($55.91) simple moving averages.
  • The 50-day moving average is located above both the 150-day and 200-day averages.
  • The 150-day moving average itself is above the 200-day average. This arrangement indicates that buyers are in control across short, intermediate, and long-term periods, a sign of a sound, trending stock.

• Proximity to Highs: Minervini's approach focuses on buying strength, not weakness. IBKR is now trading near its 52-week high of $73.35, meeting the template's rule that a stock be within 25% of its high. This shows strong momentum and a lack of overhead supply, as most investors holding the stock are in a profitable position.

• Superior Relative Strength: A main idea of the strategy is to concentrate on market leaders. With a ChartMill Relative Strength (CRS) rating of 90.46, IBKR is performing better than over 90% of all stocks in the market. This high relative strength confirms that the stock is a leader, probably attracting institutional investment, which is a strong force for continued price increase.

Fundamental Momentum for Growth Investors

While the Trend Template confirms technical condition, the High Growth Momentum (HGM) filter checks the fundamental driver behind the move. IBKR displays the kind of improving financial performance that growth investors look for.

• Earnings Growth Acceleration: The company is showing solid and improving profitability.

  • Earnings Per Share (EPS) for the trailing twelve months (TTM) grew by 23.4%.
  • Recent quarterly performance is even better, with the last quarter showing year-over-year EPS growth of 30.3%. This sequence of improvement is an important signal, often coming before major price re-ratings as the market sees getting better fundamentals.

• Positive Analyst Revisions: The sentiment among analysts is optimistic, a typical feature in high-growth situations. The average EPS estimate for the next fiscal year has been adjusted higher by 13.85% over the last three months. Such upward adjustments show increasing confidence in the company's future profitability and often work as a trigger for more price gains.

• Strong Sales and Profitability: Growth must be backed by top-line expansion and efficient operations.

  • Revenue for the TTM period grew by 12%, with the most recent quarter increasing 21.3% year-over-year.
  • The company keeps sound profit margins, with the last reported quarter at 8.92%, showing steadiness and pricing power.

Technical Analysis Summary

The detailed technical report from ChartMill gives INTERACTIVE BROKERS GROUP-CL A a complete technical rating of 10 out of 10. This score shows its steady outperformance and positive trends across multiple timeframes. The report states that both short-term and long-term trends are positive, and the stock is trading near its 52-week high with strong relative strength against its industry peers. While the setup rating is a good 6, indicating a recent pause, the overall technical view stays very strong. For a detailed look at the support and resistance levels, you can see the full technical analysis report for IBKR.

Finding Similar Opportunities

The screening process that found INTERACTIVE BROKERS GROUP-CL A can be repeated to find other possible high-growth, trend-following opportunities. The joining of Minervini's disciplined technical rules with fundamental growth measures is a strong way for building a watchlist of leading stocks. Investors searching for more candidates that fit this description can see the results of this specific screen directly: View the High Growth Momentum + Trend Template Screen.

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