Attractive stocks have exceptional fundamentals. In the case of TD Ameritrade Holding Corporation (NASDAQ:AMTD), there's is a company with an impressive track record of performance, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on TD Ameritrade Holding here.
Undervalued with solid track record
Over the past year, AMTD has grown its earnings by 72%, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 25% return to shareholders, which is an optimistic signal for the future. AMTD's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of AMTD's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, AMTD's share price is trading below the group's average. This supports the theory that AMTD is potentially underpriced.
For TD Ameritrade Holding, I've put together three key factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for AMTD’s future growth? Take a look at our free research report of analyst consensus for AMTD’s outlook.
- Financial Health: Are AMTD’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AMTD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.