Josh Brown thinks this brokerage stock is going 'way higher'

Josh Brown of Ritholtz Wealth Management has identified Interactive Brokers (IBKR) as a top stock with significant upside potential, noting its 40% gain in 2025 and belief it should rally further given peers like Schwab and Robinhood have seen larger gains. Brown attributes IBKR's appeal to its exposure to diverse currencies, strong trading volumes, and the broader financial sector tailwinds from anticipated deregulation and growth in high-net-worth households. Analysts largely concur, with an average price target indicating nearly 6% upside and eight of ten rating it a buy or strong buy.

Analysis

Interactive Brokers (IBKR) has been highlighted for its significant upside potential, underpinned by a confluence of company-specific strengths and favorable sector-wide trends. The stock's more than 40% gain in 2025 is attributed to strong trading volumes and its exposure to a wide range of currencies. This performance, however, is presented as having further room for appreciation when compared to the rallies of peers like Charles Schwab (+29%) and particularly Robinhood (+175%). The broader investment thesis rests on macroeconomic tailwinds, chiefly the prospect of continued deregulation under the Trump administration, which is viewed as creating a more favorable operating "climate" for the financial sector and justifying higher price-to-book valuations. This is supplemented by positive demographic trends, including the growth of multimillionaire households and expanding 401(k) account balances. While this bullish outlook is directionally aligned with Wall Street consensus—where eight of ten analysts rate IBKR a buy or strong buy—the consensus average price target implies a more moderate potential upside of nearly 6%.

Key Decisions for Investors

• Given the stock's strong momentum and the bullish commentary, investors could consider the thesis that IBKR has further room to run, especially when its 40% year-to-date gain is benchmarked against the 175% rally of its peer, Robinhood.
• The investment case relies heavily on sector-wide tailwinds, so investors should closely monitor the trajectory of financial deregulation and macroeconomic indicators like household wealth growth, as any changes could impact the stock's performance.
• It is prudent to weigh the highly bullish qualitative outlook against the more tempered quantitative consensus from analysts, whose average price target implies a modest 6% upside, suggesting much of the positive news may already be priced in.
• Investors should note the source's disclosure that they may hold a position in the security, and consider the stock's performance in the context of the broader financial sector, which is up 9% year-to-date.