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GAIN Capital Touches New 52-Week High

Zacks Equity Research

Shares of GAIN Capital Holdings, Inc. (GCAP) crafted a new 52-week high, touching $7.85 on Aug 12, 2013. The closing price of this financial holding company represents a solid year-to-date return of 83.5%. The trading volume for the session was 309,604 shares, substantially higher than the average of 167,191 shares over the last 3 months.  

Despite hitting its 52-week high, this Zacks Rank #1 (Strong Buy) stock has plenty of upside left, given its strong estimate revisions over the last 30 days.

Growth Drivers

The impressive second-quarter 2013 results and signing of a definitive agreement in the reported quarter to acquire Global Futures & Forex, LTD (:GFT) – a global provider of retail forex and derivatives trading were the primary growth drivers.

On Aug 7, GAIN Capital reported second-quarter earnings of 44 cents per share, substantially surpassing the Zacks Consensus Estimate of 26 cents. It also surpassed the prior-quarter earnings of 11 cents. Results were driven by top-line growth, partially offset by higher operating expenses.

Moreover, in Apr 2013, GAIN Capital announced the acquisition of Global Futures and Forex for $107.8 million. The deal is expected to be completed in the third quarter of 2013, subject to regulatory approvals and customary closing conditions.

Estimate Revisions Show Strength

Over the last 30 days, the Zacks Consensus Estimate has been revised upward by 74.5% to 82 cents per share. For 2014, the Zacks Consensus Estimate advanced 50.9% to 80 cents per share over the same time frame.   

Some stocks that are also worth considering in the same industry include TD Ameritrade Holding Corporation (AMTD) with a Zacks Rank #1 (Strong Buy) and BGC Partners, Inc. (BGCP) and E*TRADE Financial Corporation (ETFC) with a Zacks Rank #2 (Buy).

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 GCAP

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