November 23, 2023
Top 10 Stock IG Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View IG Strong Buy

360 METRICS	November 23, 2023
VALUE
VALUE	90
GROWTH
GROWTH	35
SAFETY
SAFETY	57
SENTIMENT
SENTIMENT	98
360° VIEW
360° VIEW	80

ANALYSIS: With an Obermatt 360° View of 80 (better than 80% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock IG are very positive. The 360° View is based on consolidating four consolidated indicators, with half of the indicators below and half above average for IG. The consolidated Value Rank has an attractive rank of 90, which means that the share price of IG is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 90% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 57. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 98. But the consolidated Growth Rank has a low rank of 35, which means that the company is below average in terms of growth and momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. 65 of its competitors have better growth. ...read more

RECOMMENDATION: With a consolidated 360° View of 80, IG is better positioned than 80% of all alternative stock investment opportunities based on the Obermatt Method. Three out of four consolidated Obermatt Ranks show above-average performance. The stock has as good value (Value Rank of 90), secure financing practices (Safety Rank of 57), and positive market sentiment in the professional investor community (Sentiment Rank of 98). It is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely to occur. The company’s growth expectations are below the industry average (Growth Rank of 35), but that could also be temporary since professional investors remain optimistic despite the low growth numbers. The low price as reflected in the good Value Rank could indicate that the company's future is challenging. The below-par growth performance may be the reason for this. Companies that grow less are typically cheaper than fast-growing competitors. We recommend evaluating whether the future of IG is as difficult as the stock’s low price suggests, despite the positive professional investor sentiment. Since the professional community is optimistic, you might have less to worry about, and the stock may just go through a more challenging phase now, indicating good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for IG very positive

SENTIMENT METRICS	November 23, 2023
ANALYST OPINION
ANALYST OPINION	88
OPINIONS CHANGE
OPINIONS CHANGE	42
PRO HOLDINGS
PRO HOLDINGS	96
MARKET PULSE
MARKET PULSE	83
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	98

ANALYSIS: With an Obermatt Sentiment Rank of 98 (better than 98% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock IG is very positive. The Sentiment Rank is based on consolidating four sentiment indicators where all but one are above average for IG. Analyst Opinions are at a rank of 88 (better than 88% of alternative investments), which means that currently, stock research analysts tend to recommend a stock investment in the company. The Professional Investors rank is also good at 96, which means that currently, professional investors hold more stock in this company than in 96% of alternative investment opportunities. Pros tend to favor investing in this company. In addition, Market Pulse has a rank of 83 which means that the current professional news and professional social networks are on the positive side when discussing this company (more positive news than for 83% of competitors). But Analyst Opinions Change has a below-average rank of 42, which means that stock research experts are currently changing their opinions for the worse when it comes to recommending this stock. In other words, they are getting more critical of investments in IG. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 98 (more positive than 98% compared with investment alternatives), IG has a reputation among professional investors that is significantly higher than that of its competitors. This is an early sign of caution, even if the stock has significantly appreciated. If analysts change their opinions, the stock may become too expensive. If the price is on the way down, the trend may continue. This may be a stock with a good reputation and history, but it may have reached its breaking point by now. Investors should look at the Value Ranks as well. If they indicate trouble, it might just materialize in the future. ...read more

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Value Strategy: IG Stock Price Value at the top

VALUE METRICS	November 23, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	59
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	93
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	49
DIVIDEND YIELD
DIVIDEND YIELD	85
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	90

ANALYSIS: With an Obermatt Value Rank of 90 (better than 90% compared with alternatives) for 2023, IG shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for IG. Price-to-Sales (P/S) is 59, which means that the stock price compared with what market professionals expect for future sales is lower than for 59% of comparable companies, indicating a good value concerning IG's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 93% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 85 (dividends are expected to be higher than 85% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 51% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for IG to 49. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 90, is a buy recommendation based on IG's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. ...read more

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Growth Strategy: IG Growth Momentum low

GROWTH METRICS	November 23, 2023
REVENUE GROWTH
REVENUE GROWTH	37
PROFIT GROWTH
PROFIT GROWTH	61
CAPITAL GROWTH
CAPITAL GROWTH	43
STOCK RETURNS
STOCK RETURNS	28
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	35

ANALYSIS: With an Obermatt Growth Rank of 35 (better than 35% compared with alternatives), IG shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for IG. While Profit Growth has a good rank of 61, as professionals currently expect the company to grow its profits more than 61% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 37, which means that currently professionals expect the company to grow less than 63% of its competitors, while Capital Growth has a rank of 43 and Stock Returns have been below market median, with a rank of 28 (72% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 35, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. ...read more

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Safety Strategy: IG Debt Financing Safety above-average

SAFETY METRICS	November 23, 2023
LEVERAGE
LEVERAGE	54
REFINANCING
REFINANCING	49
LIQUIDITY
LIQUIDITY	58
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	57

ANALYSIS: With an Obermatt Safety Rank of 57 (better than 57% compared with alternatives), the company IG has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of IG is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for IG. Leverage is at a rank of 54, meaning the company has a below-average debt-to-equity ratio. It has less debt than 54% of its competitors. Liquidity is also good at a rank of 58, meaning the company generates more profit to service its debt than 58% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 49, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 51% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 57 (better than 57% compared with alternatives), IG has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for IG. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: IG Top Financial Performance

COMBINED PERFORMANCE	November 23, 2023
VALUE
VALUE	90
GROWTH
GROWTH	35
SAFETY
SAFETY	58
COMBINED
COMBINED	76

ANALYSIS: With an Obermatt Combined Rank of 76 (better than 76% compared with investment alternatives), IG (Investment Banking & Brokerage, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of IG are a good value (attractively priced) with a consolidated Value Rank of 90 (better than 90% of alternatives), are safely financed (Safety Rank of 57, which means low debt burdens), but show below-average growth (Growth Rank of 35). ...read more

RECOMMENDATION: A Combined Rank of 76, is a strong buy recommendation based on IG's financial characteristics. As the company IG's key financial metrics exhibit good value (Obermatt Value Rank of 90) but low growth (Obermatt Growth Rank of 35) while being safely financed (Obermatt Safety Rank of 57), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 90% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. ...read more

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