- Revisiting my previous stock picks of Interactive Brokers and KKR & Co. demonstrates the power of InvestingPro's tools.
- Both stocks have delivered substantial returns, and the current Fair Value estimates suggest there is still more upside to come.
- By leveraging InvestingPro’s advanced tools, you can enhance your investment strategy and maximize your returns.
- Looking for a helping hand in the market? Unlock access to InvestingPro’s AI-selected stock winners for just 60 cents a day!
The stock market is full of opportunities, but finding those golden investments that offer substantial returns can be a challenging task. However, with the right tools and insights, it's possible to uncover gems that yield significant gains.
Today, we revisit two of my past stock picks, Interactive Brokers (NASDAQ:IBKR) and KKR & Co. (NYSE:KKR)., which have both delivered impressive returns.
These stocks were identified using InvestingPro's powerful Fair Value tool and Advanced Stock Screener, demonstrating the effectiveness of these tools in finding market winners.
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Interactive Brokers
- Year-To-Date Performance: +44.4%
- Market Cap: $50.4 Billion
Back in December 2023, I recommended Interactive Brokers when the stock was trading at $81.33. At that time, InvestingPro's Fair Value estimate for IBKR was $120.54, indicating a potential upside of 48.2%.
This recommendation was based on robust fundamentals, a strong growth outlook, and favorable market conditions.
Source: Investing.com
Fast forward to today, and IBKR is now trading at $119.74. It reached an all-time high of $129.19 on May 28, easily surpassing its InvestingPro Fair Value price target.
The Greenwich, Connecticut-based financial services firm has significantly outperformed the broader market this year, delivering outstanding returns for investors.
The continued growth and robust financial health of the company have been key drivers behind its impressive performance. It operates the largest electronic trading platform in the United States by number of daily average revenue trades.
It should be noted that despite the strong year-to-date rally, IBKR shares are still trading at a discount, as indicated by InvestingPro’s updated Fair Value estimate.
Source: InvestingPro
There's a possibility of a 28.4% increase from last night’s closing price, moving it closer to its Fair Value price set at $153.69 per share.
The stock has benefited from a strong earnings trajectory, increased trading activity, and expanding client accounts, reinforcing its position as a top pick in the financial sector.
KKR & Co.
- Year-To-Date Performance: +33.3%
- Market Cap: $97.7 Billion
In mid-March of this year, I highlighted KKR & Co. when it was trading at $96.83, with a Fair Value estimate of $106.14. This implied a potential upside of 10.6% at the time, as per the AI-backed models in InvestingPro.
KKR stock has since climbed to $110.48, exceeding the initial Fair Value price target. Shares, which have gained 33.3% year-to-date, reached a new record peak of $113.91 on June 12.
Source: Investing.com
Key drivers of this bullish sentiment include KKR's strong investment track record as well as a favorable macroeconomic environment for alternative investments.
The New York-based company's outstanding performance this year has been driven by its strategic investments, solid asset management business, and robust earnings growth.
Investing Pro's latest Fair Value assessment for KKR stock is $114.63, implying a further potential upside of just about 4%.
Source: InvestingPro
Additionally, InvestingPro paints a mostly positive picture of the investment management firm's Financial Health, highlighting its upbeat earnings prospects, rising net income, and overall strong profitability outlook.
It should also be noted that KKR has maintained its annual dividend payout for 15 consecutive years, underlining its focus on total shareholder return.
Finding Your Next Winner with Investing Pro
In conclusion, the success of Interactive Brokers and KKR highlights the power of InvestingPro's cutting-edge tools in finding undervalued stocks with strong upside potential.
For example, as seen below, a simple search using the Pro screener found that Berkshire Hathaway (NYSE:BRKa), ExxonMobil (NYSE:XOM), Johnson & Johnson (NYSE:JNJ), Chevron (NYSE:CVX), Adobe (NASDAQ:ADBE), Salesforce (NYSE:CRM), PDD Holdings (NASDAQ:PDD), Cisco (NASDAQ:CSCO), and Walt Disney (NYSE:DIS) meet the criteria of high-quality underpriced stocks amid the current market environment.
Source: InvestingPro
If you're looking to discover your own winning stocks, InvestingPro offers a comprehensive suite of research and analysis tools to help you succeed.
Whether you're a seasoned investor or just starting out, the platform's AI-backed models and advanced features provide the insights you need to make smarter investment choices.
With InvestingPro, you can access detailed Fair Value estimates, assess financial health scores, and utilize the Advanced Stock Screener to find stocks that meet your investment criteria.
These tools have been instrumental in identifying top performers like Interactive Brokers and KKR, and they can help you uncover the next big winner in the stock market.
Start your journey with InvestingPro today and discover the next set of winning stocks for your portfolio.
Subscribe here and unlock access to:
- ProPicks: AI-selected stock winners with proven track record.
- Fair Value: Instantly find out if a stock is underpriced or overvalued.
- ProTips: Digestible, bite-sized insight to simplify complex financial data.
- Advanced Stock Screener: Search for the best stocks based on hundreds of selected filters, and criteria.
- Top Ideas: See what stocks billionaire investors such as Warren Buffett, Ray Dalio, Michael Burry, and George Soros are buying.
Start using InvestingPro today and discover the next big winners in the stock market!
Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies' financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.