E*TRADE Financial Corporation’s ETFC inorganic growth strategies along with several restructuring moves have led to strong outcomes. Also, its focus on boosting trading business should support revenue growth. However, E*TRADE Financial continues to face intense competition from its peers.

The company’s shares have gained 27.5% year to date, outperforming 6.9% rally of the industry.

Its Zacks Consensus Estimate for 2017 and 2018 earnings has been revised slightly upward over the past 30 days.

In order to boost its top-line performance, the company has launched several new products and services. Further, it remains committed to offer a better digital experience to its customers. In sync with this, E*TRADE Financial announced the acquisition of Trust Company of America, a Denver, CO-based technology solutions and custody services provider to the independent Registered Investment Adviser market. The deal is likely to be accretive to earnings in 2019.

The company displays an improving credit quality supported by its balance sheet restructuring initiatives. The company has been reporting benefit to provision for loan losses since 2016.

Moreover, its capital deployment activities reflect its capital strength. Following the acquisition of OptionHouse, E*TRADE Financial resumed its share buyback in third-quarter 2017.

Nevertheless, the company’s ability to raise low cost debt is restricted due to the terms of the credit facility it has undertaken. Further, it remains exposed to risks of losing its client base to other renowned players in the industry.

Currently, E*TRADE Financial carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked finance stocks are Interactive Brokers Group IBKR and Raymond James Financial RJF, both carrying Zacks Rank #2 (Buy) and TD Ameritrade Holding Corporation AMTD, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Interactive Brokers witnessed an upward earnings estimate revision of 7.9% for the current year in the past 60 days. Its share price has gained 49.3%, year to date.

Raymond James’ Zacks Consensus Estimate for earnings were revised upward by 1.9% for the current year in the past 60 days. Also, its share price has increased 20.9%, year to date.

TD Ameritrade’s current-year earnings estimates were revised 11.7% upward over the last 30 days. Further, its shares have jumped 11.8%, year to date.

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E*TRADE Financial Corporation (ETFC) : Free Stock Analysis Report
 
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