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TD Ameritrade Hits New 52-Week High - Analyst Blog

Posted: 5/13/2013 6:07:00 PM
Referenced Stocks: AMNB;AMTD;PFBC;TCBK

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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