(This is The Best Stocks in the Market , introduced to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh — Robinhood (HOOD) will get a lot of consideration in the market given its fast consumer progress and colourful method to exposing thousands and thousands of younger folks to investing. Its share value has elevated nearly 400% over the final yr because it grew to become seen as one in all the main beneficiaries of the new bull market. In this enterprise, elevated exercise equals elevated income and revenue. Activity is on hearth proper now, throughout Wall Street. Which brings me to Interactive Brokers (IBKR) — a cheaper inventory with an similar driver, which joined HOOD on our Best Stocks in the Market listing this summer season. Relative to HOOD, it is underappreciated, undervalued and under-owned. But that’s beginning to change. IBKR was simply added to the S & P 500 this week, with its addition taking impact in the present day. With its $28 billion market cap, it joins different current fintech additions like Coinbase (COIN) and Block (XYZ) in the S & P Financials sector and associated ETF (XLF) . This means extra analyst protection and the good thing about being a part of massive index funds that should repeatedly purchase the inventory as their property below administration enhance. Sean’s going to get into the current earnings report, I’ll be again with the technical set-up, which is a traditional low-volume retest of the breakout stage. Best Stock Spotlight: Interactive Brokers (IBKR) On the listing since: 7/8/2025 One-year value chart with transferring averages, RSI: Sean — IBKR is the 4th largest prime brokerage behind Goldman, Morgan Stanley, and JPM, in accordance to Quartr. They maintain a considerable market share amongst proprietary merchants — these merchants favor suppliers that ship the highest high quality when it comes to execution, tech, and prime companies, and IBKR is delivering on that expectation. As of their final earnings, the firm added 250,000 new accounts which brings the operating complete for the yr to 528,000 — exceeding the complete of all additions for 2023. Options and futures trading grew 24% and 18% year-over-year, respectively. These volumes are main to larger earnings. IBKR reported an industry-leading pre-tax revenue margin of 75% in Q2 2025, up from 72% the prior quarter. IBKR has grown income at a 31% CAGR the previous 3 years which is spectacular, however backside line earnings have grown even quicker at a 41% CAGR for internet revenue. HOOD is pushing the {industry} to innovate, however IBKR is quietly sustaining a aggressive edge when it comes to product improvement. They expanded to 24 hour trading and through their newest earnings name, the firm reported 170% quantity progress for in a single day trading. It’s not simply IBKRs trailing financials which might be spectacular. In the coming earnings report in October, they anticipate 11% income progress, 19% working revenue progress, and 18% EPS progress. It’s not a sleepy monetary inventory by any means. While you are paying a premium to the market primarily based on earnings, you are getting publicity to the expanded trading theme in a a lot cheaper automobile than HOOD, albeit with barely decrease earnings progress expectations. All of this factors to a broader theme: individuals are trading extra and IBKR is one in all the largest beneficiaries of that exercise. Whether it is extra refined retail buyers drawn to 24-hour entry, or skilled merchants counting on IBKR’s execution and prime companies, the firm is capturing a bigger share of the surge in trading volumes. That elevated exercise is mirrored on the revenue assertion with stronger earnings progress and increasing margins. Risk administration Josh — In order for a retest after a breakout to achieve success, the prior resistance should maintain whereas the promoting ought to be comparatively mild. This tells you that the profit-takers aren’t being super-aggressive and that the longs are staying put. That’s exactly what I’m seeing right here to date. After the announcement of IBKR’s index addition and the firm’s earnings report, the inventory pulled again whereas relative energy hung in there at round 50. That rising 50-day transferring common is at $60 — exactly the stage that previously served as resistance for the inventory again in January and February of this yr. I believe this retest will likely be profitable and the inventory may get going once more in its new trading vary. A break above $65 can be a sign to merchants that this factor is really on its approach. Longer-term buyers can use $50 as their line in the sand. A break under and the development is busted. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and don’t mirror the opinions of CNBC, NBC UNIVERSAL, their mother or father firm or associates, and should have been beforehand disseminated by them on tv, radio, web or one other medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. 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