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Why You Should Hold on to E*TRADE Financial (ETFC) Stock

Zacks Equity Research

On Apr 5, we issued an updated research report on E*TRADE Financial Corporation ETFC. The company’s several restructuring moves and focus on boosting its trading business led to impressive outcomes. However, E*TRADE Financial continues to face intense competition from its peers.

The company’s shares gained 24.3% in the last six months, outperforming the 15.7% growth for the Zacks categorized Financial - Investment Bank industry.

In order to boost growth, the company launched several new products and services. Further, in Sep 2016, it acquired OptionsHouse, an online options broker, with a view to increase the amount of derivatives mix in its Daily Average Revenue Trades.

The company displays an improving credit quality. Moreover, its capital deployment activities reflect its capital strength.

Nevertheless, E*TRADE Financial’s ability to raise low cost debt is restricted due to the terms of the credit facility it has undertaken. Further, it remains exposed to risks of losing its client base to other renowned players in the industry.

Currently, E*TRADE Financial carries a Zacks Rank #3 (Hold).

Some better-ranked finance stocks include Bank of Montreal BMO, KB Financial Group Inc. KB and BGC Partners, Inc. BGCP. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Bank of Montreal witnessed an upward earnings estimate revision of 4.6% for the current year in the past 60 days. Its share price gained 26.0%, over the past one year.

KB Financial’s earnings estimates were revised upward by a solid 7.4% for the current year in the past 30 days. Also, its share price increased 54.7%, over the last one year.

BGC Partners’ earnings estimates were revised 5.3% upward over the last 30 days. Further, its shares surged 23.4% in the last one year.

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Bank Of Montreal (BMO): Free Stock Analysis Report
 
KB Financial Group Inc (KB): Free Stock Analysis Report
 
E*TRADE Financial Corporation (ETFC): Free Stock Analysis Report
 
BGC Partners, Inc. (BGCP): Free Stock Analysis Report
 
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