Interactive Brokers Group Inc ( IBKR ) shares are trending on Tuesday after the automated global electronic broker was selected to join the S&P 500.

What To Know: S&P Dow Jones Indices announced that Interactive Brokers ( IBKR ) will be added to the S&P 500, effective before the market opens on Aug. 28.

The company will replace Walgreens Boots Alliance in the index as Sycamore Partners is set to acquire Walgreens Boots Alliance in a deal expected to be completed soon. Talen Energy will replace Interactive Brokers ( IBKR ) in the S&P MidCap 400.

Interactive Brokers ( IBKR ) said last month that client accounts were up 32% year-over-year as of July. The company reported 3.5 million daily average revenue trades in July and ended the period with client equity of $685.8 billion, up 35% year-over-year.

Is IBKR A Good Stock To Buy

When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future.

Interactive Brokers Group ( IBKR ) has reported average annual revenue growth of 22.39% over the past five years.

It's also important to pay attention to valuation when deciding whether to buy a stock. Interactive Brokers Group ( IBKR ) has a forward P/E ratio of 32.36. This means investors are paying $32.36 for each dollar of expected earnings in the future. The average forward of Interactive Brokers Group's ( IBKR ) peers is 23.19.

Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index. For in-depth analysis tools and important financial data, check out Benzinga PRO.

IBKR Price Action: Interactive Brokers ( IBKR ) shares were up more than 4% in after-hours following the index shakeup announcement. Shares were down 0.47% at $62.47 at the time of publication on Tuesday, according to Benzinga Pro.

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