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TD Ameritrade (AMTD) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

TD Ameritrade (AMTD) closed at $38.48 in the latest trading session, marking a +1.24% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.36%. Elsewhere, the Dow lost 0.21%, while the tech-heavy Nasdaq added 0.76%.

Prior to today's trading, shares of the online brokerage had gained 3.91% over the past month. This has outpaced the Finance sector's gain of 3.63% and lagged the S&P 500's gain of 6.9% in that time.

AMTD will be looking to display strength as it nears its next earnings release. In that report, analysts expect AMTD to post earnings of $0.90 per share. This would mark a year-over-year decline of 14.29%. Our most recent consensus estimate is calling for quarterly revenue of $1.40 billion, down 10.33% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.59 per share and revenue of $5.76 billion, which would represent changes of -13.08% and -4.24%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for AMTD. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.44% higher. AMTD is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that AMTD has a Forward P/E ratio of 10.59 right now. For comparison, its industry has an average Forward P/E of 13.75, which means AMTD is trading at a discount to the group.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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TD Ameritrade Holding Corporation (AMTD) : Free Stock Analysis Report
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Zacks Investment Research