E*TRADE Financial Corporation
) touched a new 52-week high of $12.38 during its trading session
on Jun 26, reflecting an increase over the previous high of
$12.34 reached on Jun 21.
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E*TRADE Financial closed the trading day on Jun 26 at $12.24,
reflecting a solid year-to-date return of 63.2%. The trading
volume for the session was 3.4 million shares. Further upside
potential exists for this Zacks Rank #3 (Hold) online brokerage
firm as it is evident from the earnings estimate revisions in the
last 30 days and expected earnings growth of 247.7% for 2013.
E*TRADE Financial recently came out with its monthly activity
update for May 2013. Daily Average Revenue Trades (DARTs),
representing the number of trades from which brokers can expect
commissions or fees, rose 15% to 162,940 compared with the
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. Net
new brokerage accounts in the month were 15,648 while E*TRADE's
net new brokerage assets were $1.0 billion, up from $0.5 million
in the prior month.
For E*TRADE's entire loan portfolio, on a monthly basis, special
mention delinquencies decreased 8% and total at-risk
delinquencies fell 6%.
The activity update clearly reflects how E*TRADE's performance
has improved since the company last reported its results for the
quarter ended Mar 31, 2013. DARTs at the end of the quarter were
149,000, up 16% sequentially. Net new brokerage assets were $3.1
billion. Total customer accounts were 4.5 million, including 2.9
million brokerage accounts.
Impressive monthly activity update for May has raised optimism
for a better performance ahead by E*TRADE Financial. We currently
have an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +6.0% for 2013 and +8.1% for 2014.
Estimate Revisions Show Potency
Over the last 30 days, the Zacks Consensus Estimate for E*TRADE
Financial increased by 2.0% to 50 cents per share for 2013 and
rose 1.6% to 62 cents for 2014.
Other stocks to watch out for in the industry are
Investment Technology Group Inc.
Ladenburg Thalmann Financial Services Inc.
), each with a Zacks Rank #1 (Strong Buy) while
Cowen Group, Inc.
), carries a Zacks Rank #2 (Buy).