) soared to a new 52-week high of $31.10 at the beginning of the
trading session on Jan 6. However, the stock closed the session
at $30.57, which reflects a solid return of 75.2% over the past
one year. The trading volume for the session was 2.0 million
Despite the strong price appreciation, this Zacks Rank #3 (Hold)
investment broker still has upside left, given an almost stable
estimate over the last 60 days and expected long-term earnings
growth of 18.3%.
TD Ameritrade's impressive performance was driven by an
improvement in average client trades per day for Nov 2013 and
strong fiscal fourth-quarter 2013 results, which comprised a
positive earnings surprise of 5.9%.
For November, average client trades per day was 416,000, up 22.0%
from 341,000 in the prior-year period. Innovative product
offerings, advanced customer services, online trading platform
and prudent expense management continue to boost TD Ameritrade's
trading and investment business.
On Oct 31, TD Ameritrade declared fiscal fourth-quarter earnings
of 36 cents per share, which beat the Zacks Consensus Estimate by
2 cents. Better-than-expected results were aided by top-line
growth, partially offset by higher expenses.
Moreover, TD Ameritrade delivered positive earnings surprises in
the trailing 4 quarters with an average beat of 8.3%.
TD Ameritrade's efficient capital deployment activities, wherein
it returned 75% of its earnings to stockholders, are commendable.
Along with fiscal fourth-quarter 2013 earnings release, the
company declared a 33% increase in its quarterly dividend to 12
cents per share. The dividend was paid on Nov 19, 2013 to
shareholders of record as of Nov 9.
Additionally, on Dec 17, 2013, TD Ameritrade paid a special cash
dividend of 50 cents per share to shareholders of record as of
Dec 3. Overall, the company disbursed two special dividends in
Estimate Revisions Show Potency
In the last 60 days, the Zacks Consensus Estimate for 2013
increased nearly 1% to $1.34 per share. However, for 2014, the
Zacks Consensus Estimate declined roughly 1% to $1.62 per share
over the same time frame.
Some better-ranked investment brokers worth considering include
Investment Technology Group Inc.
KCG Holdings, Inc.
Ladenburg Thalmann Financial Services Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
TD AMERITRADE (AMTD): Free Stock Analysis
INVEST TECH-NEW (ITG): Free Stock Analysis
KCG HOLDINGS (KCG): Free Stock Analysis
LADENBURG THALM (LTS): Free Stock Analysis
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