E*TRADE Financial Corporation
) touched a new 52-week high of $16.47 during its trading session
on Sep 6, reflecting an increase over the previous high of $15.97
reached on Sep 4.
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E*TRADE Financial closed the trading on Sep 6 at $16.26,
reflecting a solid year-to-date return of 83.7%. The trading
volume for the session was 7.5 million shares. Further upside
potential exists for this Zacks Rank #2 (Buy) online brokerage
firm as evident from the earnings estimate revisions in the last
60 days and expected earnings growth of 283.8% for 2013.
E*TRADE Financial's monthly activity update for the month of Jul
2013 shows that Daily Average Revenue Trades (DARTs),
representing the number of trades from which brokers can expect
commissions or fees, rose 10% on a year-over-year basis. This,
however, reflected a sequential decline of 2%.
Total number of accounts at the end of the month came to about
4.6 million, comprising 3.0 million brokerage accounts, 1.2
million stock plan accounts and 0.4 million banking accounts.
Gross new brokerage accounts in the month were 25,030, while
E*TRADE's net new brokerage assets were $0.6 million.
Prior to this monthly activity update, on Jul 22, 2013, E*TRADE
reported its financial results for the second quarter of 2013.
Net income per share came in at 21 cents, up 75% over the
year-ago quarter and 61.5% above the Zacks Consensus Estimate of
Moreover, excluding the goodwill impairment and other
non-recurring items, core operating expenses declined 7.4%
sequentially to $262 million. Additionally, the company maintains
a robust capital position in compliance with the regulatory
In addition to the above, the recent approval of E*TRADE's
subsidiary, E*TRADE Bank to distribute dividend capital amounting
to $100 million to the parent company has led to a positive
revision in the earnings estimate. Expectations regarding
E*TRADE's performance in the quarters ahead remain high. We
currently have an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +6.4% for 2013 and +9.5% for 2014.
Estimate Revisions Show Potency
Over the last 60 days, the Zacks Consensus Estimate for E*TRADE
Financial increased by 26.0% to 63 cents per share for 2013 and
rose 21.3% to 74 cents for 2014.
Other stocks to watch out for in the industry are
GAIN Capital Holdings, Inc.
TD Ameritrade Holding Corporation
), each holding a Zacks Rank #1 (Strong Buy) while
Investment Technology Group Inc.
) carries a Zacks Rank #2 (Buy).