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TD Ameritrade Hits New 52-Week High

Zacks Equity Research

Shares of TD Ameritrade Holding Corporation (AMTD) attained a new 52-week high, touching $24.43 on Jun 19. The closing price of this online brokerage firm reflects a solid year-to-date return of 39.6%. The trading volume for the session was 8.7 million shares, compared with a 3-month average of 3.8 million.

Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its positive estimate revisions over the last 30 days as well as expected year-over-year earnings growth of 5.4% for 2013.

Growth Drivers

Higher Daily Average Trades, boosted by a rise in trading volumes in the equity markets, and impressive fiscal second-quarter 2013 results – including lower expenses, a healthy balance sheet and solid capital position – have been the primary growth drivers for TD Ameritrade.

On Jun 9, the company reported a 9% rise in client trades in its Activity Report for the month of May 2013. Moreover, on a year-over-year basis, the U.S. trades were up 13%. Daily Average Trades were 417,000, compared with 383,000 in the prior month.

Moreover, on Apr 18, TD Ameritrade’s fiscal second-quarter 2013 earnings came in at 26 cents per share, up from the year-ago quarter number of 25 cents. However, this was in line with the Zacks Consensus Estimate.

Results for the quarter reflected a rise in revenues and a fall in operating expenses. Further, an increase in total client assets was a positive.

Additionally, TD Ameritrade has delivered positive earnings surprises in 3 of the last 4 quarters with an average beat of 8.1%.

Positive Estimate Revisions

For TD Ameritrade, over the last 30 days, 3 of the 13 estimates for 2013 have been revised upward, raising the Zacks Consensus Estimate by 1% to $1.12 per share. For 2014, 2 of the 13 estimates moved upward over the same time period.

Better performing financial stocks include Central Pacific Financial Corp. (CPF), TriCo Bancshares (TCBK) and Preferred Bank (PFBC), all of which carry  a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on AMTD

Read the Full Research Report on CPF

Read the Full Research Report on PFBC

Read the Full Research Report on TCBK

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