TD Ameritrade Hits New 52-Week High - Analyst Blog


Shares of TD Ameritrade Holding Corporation ( AMTD ) attained a new 52-week high, touching $22.00 on May 10. The closing price of this online brokerage firm reflects a solid year-to-date return of 27.6%. The trading volume for the session was 5.3 million shares, compared with an average 3-month volume of 3.4 million

Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock still has plenty of upside left, given its strong estimate revisions over the last 60 days as well as expected year-over-year earnings growth of 12.2% for 2013.

Growth Drivers

Higher Daily Average Revenue Trades (DARTs), reflecting a rise in trading volumes in the equity markets, as well as impressive fiscal second-quarter 2013 results - including lower expenses, a healthy balance sheet and solid capital position - have been the primary growth drivers for TD Ameritrade.

On May 9, the company reported higher U.S. trades in its Activity Report for the month of Apr 2013. Moreover, on a year-over-year basis, the U.S. trades were up 4%. DARTs were 383,000, compared with 361,000 in the prior month.

Moreover, on Apr 18, TD Ameritrade's fiscal second-quarter 2013 earnings came in at 26 cents per share, up from 25 cents in the year-ago quarter. However, reported earnings were in line with the Zacks Consensus Estimate.

Results for the quarter reflected a rise in revenues and a fall in operating expenses. Further, an increase in total client assets was a positive.

Additionally, TD Ameritrade has delivered positive earnings surprises for 3 out of the last 4 quarters with an average beat of 8.1%.

Estimate Revisions Show Potency

For TD Ameritrade, over the last 60 days, 5 of the 14 estimates for 2013 have been revised upward, raising the Zacks Consensus Estimate by 1.8% to $1.11 per share. For 2014, 3 of the 14 estimates moved upwards over the same time frame.

Better performing financial stocks include American National Bankshares Inc. ( AMNB ), TriCo Bancshares ( TCBK ) and Preferred Bank ( PFBC ), all of which carry  a Zacks Rank #1 (Strong Buy).

AMER NATL BNKSH (AMNB): Free Stock Analysis Report

TD AMERITRADE (AMTD): Free Stock Analysis Report

PREFERRED BANK (PFBC): Free Stock Analysis Report

TRICO BANCSHRS (TCBK): Free Stock Analysis Report

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Zacks Investment Research

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

This article appears in: Investing , Business , Stocks

Referenced Stocks: AMNB , AMTD , PFBC , TCBK

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