Two Broker Stocks That Are Poised to Run
As the stock market continues its assault on all-time highs,
there has been a strong influx of investment by individual retail
investors. These individual investors typically utilize
online platforms to buy and sell stocks, and statistically, come
into equities during the mid-way point of a market
While this trend has been good news for a number of companies
in the space, two behemoths in the industry look to be in prime
position to benefit;
). Both of these companies currently have a Zacks Rank #1 (Strong
Buy), and are seeing a surge in growth levels due to this
increased retail investment activity.
Analysts are also hoping on board this trend, as many have
been raising their estimates for these stocks in recent weeks,
suggesting that both companies are poised for sustained growth
over the next 6-12 months.
E*Trade in Focus
E*Trade has seen significant EPS estimate upgrades over the
past 60 days, with Q1 2014 estimates jumping from $0.19 to
$0.22. This would indicate an 82.14% year over year growth
rate. Furthermore, estimates for 2014 and 2015 have
increased as well; $0.87 to $0.91, and $1.08 to $1.16,
Moreover, the covering analysts have all increased their EPS
estimates for Q1 2014
through 2015. This shows that there is 100% agreement by
analysts that ETFC will continue to see solid growth out to
2015. Finally, this company has an average (last 4
quarters) Positive Earnings Surprise of 61.54%, so it has had no
trouble in beating estimates either.
TD Ameritrade Estimates
TD Ameritrade has seen almost unanimous analyst upgrades over
the past 60 days (only 1 out of the 12 coverage analysts has not
increased their estimates), with Q1 2014 estimates rising to
$0.32 from $0.31 (23.08% year over year growth).
Also, estimates for Fiscal Year 2014, and 2015 have risen from
$1.34 to $1.41, and $1.61 to $1.70, respectively.
Furthermore, TD Ameritrade has had three consecutive positive
earnings surprises, with an average positive surprise of
Finance-Investment Brokers industry
is currently ranked #34 out of 265, putting it in the top 13% of
all industries, so clearly the trend is pretty widespread across
the space. In fact, amongst the companies within the
industry, we also have
Gain Capital Holdings
Investment Tech Group
) as Zacks Rank #1 Strong Buys.
This suggests that this retail investor trend is looking
pretty promising and that many stocks in the space could benefit
from the surge in investing interest. So if you are looking to
play this trend from an investing perspective, either ETFC or
AMTD could be excellent picks in the near term, and especially so
if robust trading volumes continue to help push earnings
estimates higher for these discount broker giants.
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TD AMERITRADE (AMTD): Free Stock Analysis
E TRADE FINL CP (ETFC): Free Stock Analysis
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