Sunday, December 16, 2012

Why Interactive Brokers Is Poised to Trade Higher

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronic brokerage operator Interactive Brokers Group (NASDAQ: IBKR  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Interactive Brokers and see what CAPS investors are saying about the stock right now.

Interactive Brokers facts

Headquarters (founded)

Greenwich, Conn. (1977)

Market Cap

$700.9 million

Industry

Specialized finance

Trailing-12-Month Revenue

$1.2 billion

Management

Founder/Chairman/CEO Thomas Peterffy
CFO Paul Brody

Return on Equity (average, past 3 years)

9.6%

Cash / Debt

$23.0 billion / $5.2 billion

Dividend Yield

2.7%

Competitors

Charles Schwab (NYSE: SCHW  ) E*TRADE Financial (NASDAQ: ETFC  ) TD Ameritrade (NYSE: AMTD  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 605 members who have rated Interactive Brokers believe the stock will outperform the S&P 500 going forward.

Earlier today, one of those bulls, RossMcIntyre, offered some consumer insight into the bull case:

I use Interactive Brokers to manage my portfolio of local and international stocks. In comparison to other discount brokers I have seen, their tools are far more sophisticated and they are able to offer their services at a fraction of the cost. However, I also see them as a first mover in offering their clients easy access to international stock markets. In this respect they have left the competition in the dust.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Interactive Brokers may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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