In the latest trading session, TD Ameritrade (AMTD) closed at $37.64, marking a -0.58% move from the previous day. This change was narrower than the S&P 500's daily loss of 2.37%. Meanwhile, the Dow lost 1.92%, and the Nasdaq, a tech-heavy index, lost 3.02%.
Coming into today, shares of the online brokerage had lost 1.61% in the past month. In that same time, the Finance sector lost 2.63%, while the S&P 500 lost 2.31%.
Wall Street will be looking for positivity from AMTD as it approaches its next earnings report date. The company is expected to report EPS of $0.92, down 12.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.41 billion, down 9.69% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.60 per share and revenue of $5.77 billion, which would represent changes of -12.83% and -4.11%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AMTD. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. AMTD is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note AMTD's current valuation metrics, including its Forward P/E ratio of 10.51. This represents a discount compared to its industry's average Forward P/E of 12.76.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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