Prediction: Interactive Brokers Stock Will Soar Over the Next Decade

This growth stock is just getting started

Nevertheless, Even better, un Nvidia and Palantir, this stock still looks undervalued

Interestingly, this isn't even a stock

It's a financial company, given current economic conditions

I'm referring to the online stock brokerage Interactive Brokers (IBKR 1, considering recent developments

With its soaring revenue and fits, as well as its impressive customer account growth, this company's momentum looks poised to persist (an important development), in today's market environment

Moreover, However, Indeed, given the company's history of execution, its recent uptick in customer accounts, and its competitive advantage as a low-cost operator, it's highly ly that this stock will soar over the next decade

Additionally, Image source: Getty Images

Fortunately, the pureplay brokerage, which prides itself on automation and low costs, dered, in light of current trends

Strong fundamentals this importantly help support the growth stock's boosted valuation multiple

S now trade at a price-to-earnings multiple of 33, up from 25 at the start of the year and from 20 at the lows during April's market sell-off

Momentum where it matters most To understand the bull case for Interactive Brokers, however, investors have to look beyond the company's reported revenue and earnings-per- growth (which is quite significant), in this volatile climate

Capturing its momentum is the online brokerage's strong customer metrics (remarkable data)

At the same time, The company's investments in automation are helping (remarkable data)

Additionally, "Our application cessing is highly automated and continually becoming even more so, explained Interactive Brokers Director of Investor Relations Nancy Stuebe during the company's second-quarter earnings call, "allowing us to handle surges in new accounts efficiently, without adding significantly to our headcount or cost base, considering recent developments. " The company has added 528,000 customers in 2025 alone

Additionally, increased customer activity is helping

On the other hand, Lately, activity has been aided by a volatile stock market

The period included April's sell-off and the subsequent V-shaped recovery in the stock market

Moreover, "Volatility and uncertainty often spark increased market activity," Stuebe explained during the earnings call

Additionally, "Combined with our strong net new account growth, this led to our client trading volumes expanding for stocks, options, and futures

Furthermore, " Though it's worth noting that robust customer momentum isn't new for Interactive Brokers

The evidence shows company consistently grows its customer accounts at strong, double-digit growth rates, regardless of the quarter's volatility

While recent customer account growth rates and DART growth are unly to be sustainable, investors should at least expect double-digit growth rates in the teens or better in both key customer metrics for the next few years and beyond

At the same time, The bull case Overall, Interactive Broker's robust customer momentum, when combined with the company's highly automated operation, is a recipe for strong earnings growth for years to come

Of course, there are risks

If competing brokerages can replicate Interactive Brokers' automation, for instance, they could reverse their market losses and ultimately slow Interactive Brokers' growth

Further, more than half of the company's revenue is currently generated from net interest income, given current economic conditions

If the Federal Reserve lowers interest rates, this line item will ly be hurt

However, Even with these risks, Interactive Brokers' strong customer momentum should easily offset declines in net interest income over the long haul

Furthermore, competition will ly struggle to replicate Interactive Brokers' secret recipe for automation -- a prietary cess the company has perfected over decades (this bears monitoring)

However, While there's no guarantee that the stock will beat the market over the long haul, it seems ly

Nevertheless, Given the stock's historical volatility, it will ly be a bumpy ride, but bably a worthwhile one

The Author Daniel Sparks is a contributing Stock Market Analyst at The Motley Fool covering nology, industrials, financials, and consumer goods

Daniel is currently the owner and chief investment officer of Sparks Capital Management, in today's financial world

Furthermore, He holds an MBA from Colorado State University

Moreover, Fun fact: The Globe and Mail highlighted Daniel and his investment philosophy in an article titled, “This stock picker is outperforming nearly everybody else

Here's how he is doing it. " TMFDanielSparks X @sparks_capital Daniel Sparks and his clients have no position in any of the stocks mentioned, amid market uncertainty

On the other hand, The Motley Fool has positions in and recommends Interactive Brokers Group, Nvidia, and Palantir nologies

On the other hand, The Motley Fool has a disclosure policy.