A New 52-Week High for E*TRADE - Analyst Blog

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Shares of E*TRADE Financial Corporation ( ETFC ) 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 million shares.

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 of 300%.

Growth Drivers

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. ( EVR ), Interactive Brokers Group, Inc. ( IBKR ) and The Charles Schwab Corporation ( SCHW ). All 3 companies carry a Zacks Rank #2 (Buy).



E TRADE FINL CP (ETFC): Free Stock Analysis Report

EVERCORE PARTNR (EVR): Free Stock Analysis Report

INTERACTIVE BRK (IBKR): Free Stock Analysis Report

SCHWAB(CHAS) (SCHW): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ETFC , EVR , IBKR , SCHW

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