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TD Ameritrade Hits New 52-Week High - Analyst Blog

Posted
6/20/2013 10:31:00 AM
By: Zacks.com
Referenced Stocks:AMTD;CPF;PFBC;TCBK

Shares of TD Ameritrade Holding Corporation ( AMTD ) attained a new 52-week high, touching $24.43 on Jun 19. The closing price of this online brokerage firm reflects a solid year-to-date return of 39.6%. The trading volume for the session was 8.7 million shares, compared with a 3-month average of 3.8 million.

Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its positive estimate revisions over the last 30 days as well as expected year-over-year earnings growth of 5.4% for 2013.

Growth Drivers

Higher Daily Average Trades, boosted by a rise in trading volumes in the equity markets, and 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 Jun 9, the company reported a 9% rise in client trades in its Activity Report for the month of May 2013. Moreover, on a year-over-year basis, the U.S. trades were up 13%. Daily Average Trades were 417,000, compared with 383,000 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 the year-ago quarter number of 25 cents. However, this was 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 in 3 of the last 4 quarters with an average beat of 8.1%.

Positive Estimate Revisions

For TD Ameritrade, over the last 30 days, 3 of the 13 estimates for 2013 have been revised upward, raising the Zacks Consensus Estimate by 1% to $1.12 per share. For 2014, 2 of the 13 estimates moved upward over the same time period.

Better performing financial stocks include Central Pacific Financial Corp. ( CPF ), TriCo Bancshares ( TCBK ) and Preferred Bank ( PFBC ), all of which carry  a Zacks Rank #1 (Strong Buy).



TD AMERITRADE (AMTD): Free Stock Analysis Report

CENTRAL PAC FIN (CPF): Free Stock Analysis Report

PREFERRED BANK (PFBC): Free Stock Analysis Report

TRICO BANCSHRS (TCBK): Free Stock Analysis Report

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