On Aug 8, 2013, Zacks Investment Research upgraded
GAIN Capital Holdings, Inc
) to a Zacks Rank #1 (Strong Buy).
TD AMERITRADE (AMTD): Free Stock Analysis
BGC PARTNRS INC (BGCP): Free Stock Analysis
E TRADE FINL CP (ETFC): Free Stock Analysis
GAIN CAP HLDGS (GCAP): Free Stock Analysis
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Why the Upgrade?
GAIN Capital has been witnessing rising earnings estimates on the
back of strong second-quarter results. Moreover, the company has
an expected long-term earnings growth rate of 15.00%.
On Aug 7, 2013, GAIN Capital reported second-quarter earnings of
44 cents per share, substantially surpassing the Zacks Consensus
Estimate of 26 cents. It also surpassed the prior-quarter
earnings of 11 cents.
Better-than-expected results were driven by top-line growth,
partially offset by higher operating expenses.
GAIN Capital's net revenue came in at $73.0 million, up 59.7%
from $45.7 in the prior-year quarter. However, total expenses
increased 22.4% to $48.6 million.
GAIN Capital's EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization) stood at $26.9 million, up
substantially year over year. Moreover, EBITDA margin stood at
36.8% compared with 19.4% in the year-ago period.
Further, as of Jun 30, 2013, cash and cash equivalent stood at
$60.0 million, up 63% from the previous-year quarter. Moreover,
shareholders' equity stood at $179.0 million as of Jun 30, 2013,
compared with $163.7 million as of Jun 30, 2012.
Additionally, in the reported quarter, GAIN Capital signed a
definitive agreement to acquire Global Futures & Forex, LTD
(GFT) - a global provider of retail forex and derivatives
Over the last 30 days, the Zacks Consensus Estimate for 2013 went
up by 74.5% to 82 cents per share. Moreover, for 2014, the Zacks
Consensus Estimate went up by 50.9% to 80 cents per share over
the same time frame.
Other Stocks to Consider
Other stocks that are also worth considering in the same industry
TD Ameritrade Holding Corporation
) with a Zacks Rank #1 (Strong Buy) and
BGC Partners, Inc
E*TRADE Financial Corporation
) with a Zacks Rank #2 (Buy).