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E*TRADE Hits New 52-Week High

Zacks Equity Research

Shares of E*TRADE Financial Corporation (ETFC) hit a new 52-week high, touching $15.35 in the first half of the trading session on Aug 2. However, the stock closed the session at $15.29, reflecting a solid year-to-date return of 66.4%. The trading volume for the session was 2.1 million shares.

Despite the strong price appreciation, this Zacks Rank #2 (Buy) bank has plenty of upside left, given its strong estimate revisions over the past 30 days and expected year-over-year earnings growth of 12.0% for 2013.

Growth Drivers

E*TRADE’s impressive price performance reflects solid second-quarter 2013 results, including a positive earnings surprise of 61.54%. Additionally, the company maintains a robust capital position in compliance with the regulatory guidelines.
On Jul 22, E*TRADE declared net income of 21 cents per share, substantially beating the Zacks Consensus Estimate of 13 cents and higher than the prior quarter figure of 12 cents.

The top line improved with daily average revenue trades (DARTs) for the reported quarter increasing 1% sequentially to 150,000. Moreover, excluding the goodwill impairment and other non-recurring items, core operating expenses declined $21 million sequentially to $262 million.

Estimate Revisions Show Potency

In the last 30 days, the Zacks Consensus Estimate for 2013 increased 26.0% to 63 cents per share. For 2014, the Zacks Consensus Estimate advanced 19.7% to 73 cents per share over the same time frame.

Some other banks that are also worth considering include TD Ameritrade Holding Corporation (AMTD) and FXCM Inc. (FXCM) with a Zacks Rank #1 (Strong Buy), and BGC Partners, Inc. (BGCP) with a Zacks Rank #2.

Read the Full Research Report on ETFC

Read the Full Research Report on BGCP

Read the Full Research Report on AMTD

Read the Full Research Report on FXCM

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