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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on E*TRADE Financial Corporation (NASDAQ:ETFC) due to its excellent fundamentals in more than one area. ETFC is a company with a a strong history of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on E*TRADE Financial here.
Good value with proven track record
Over the past year, ETFC has grown its earnings by 52%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, ETFC also outperformed its industry, which delivered a growth of 39%. This is an optimistic signal for the future. ETFC's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if ETFC's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the capital markets industry, ETFC is also trading below its peers, relative to earnings generated. This supports the theory that ETFC is potentially underpriced.
For E*TRADE Financial, there are three key aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for ETFC’s future growth? Take a look at our free research report of analyst consensus for ETFC’s outlook.
- Financial Health: Are ETFC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ETFC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.