) crafted a new 52-week high, touching $18.04 at the beginning of
the trading session on Nov 11. However, this investment broker
closed the session at $17.93, which reflects a solid year-to-date
return of 95.1%. The trading volume for the session was 3.67
Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock
has plenty of upside left, given its strong estimate revisions
over the last 30 days and expected year-over-year earnings growth
Impressive third-quarter 2013 results - including year-over-year
earnings growth and decreased expenses - as well as a strong
capital position were the primary growth drivers for E*TRADE.
On Oct 23, E*TRADE reported its third-quarter 2013 earnings of 16
cents per share, improving significantly from a net loss of 10
cents per share in the prior-year quarter. However, results were
in line with the Zacks Consensus Estimate.
A year-over-year decrease of 7.8% in core operating expenses and
13.0% rise in total daily average revenue trades (DARTs) were the
tailwinds for the quarter. Moreover, the company's capital ratios
depict its strong position. However, a 14.9% fall in net revenue
acted as the headwind for the quarter.
Further, E*TRADE reduced its balance-sheet risk further. The
company's loan portfolio was $9.0 billion at the end of the
reported quarter, down 21% year over year.
Estimate Revisions Show Potency
Over the last 30 days, 5 out of 8 estimates for 2013 have been
revised upward for E*TRADE, lifting the Zacks Consensus Estimate
by 6.3% to 68 cents per share. For 2014, 5 out of 8 estimates
moved north, helping the Zacks Consensus Estimate advance 7.7% to
84 cents per share.
Some better performing investment brokers include
Evercore Partners Inc.
Interactive Brokers Group, Inc.
). All 3 companies carry a Zacks Rank #2 (Buy).
E TRADE FINL CP (ETFC): Free Stock Analysis
EVERCORE PARTNR (EVR): Free Stock Analysis
INTERACTIVE BRK (IBKR): Free Stock Analysis
SCHWAB(CHAS) (SCHW): Free Stock Analysis
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