|Bid||59.27 x 800|
|Ask||59.30 x 1100|
|Day's range||58.57 - 59.47|
|52-week range||40.31 - 63.01|
|PE ratio (TTM)||32.33|
|Earnings date||24 Jul 2018|
|Forward dividend & yield||0.84 (1.41%)|
|1y target est||68.25|
In June, Charles Schwab Corporation (SCHW) is covered by 20 analysts. Six of these analysts recommended a “hold,” eight gave “strong buy” ratings, and one recommended a “sell.” The remaining five analysts suggested a “buy” on Charles Schwab stock, and there were no “strong sell” recommendations.
E*TRADE Financial Corporation’s (ETFC) EV-to-EBITDA ratio is ~38.1x. This reflects its premium valuations in relation to its competitors’ average of ~25.7x. The company’s competitors have the following EV-to-EBITDA ratios on an NTM (next-12-months) basis: Charles Schwab Corporation (SCHW): ~48.2x TD Ameritrade Holding Corporation (AMTD): ~12.4x Interactive Brokers Group (IBKR): ~16.4x
In the previous article, we saw how digitization is shaping the brokerage industry and how market participants are adapting to the available digital technologies. At the end of May, TD Ameritrade (AMTD) developed Personalized Portfolios, which provides investors with the ability to customize their investments. TD Ameritrade’s clients are able to deal with senior financial consultants, which allows them to interact on a one-on-one basis.
In the direct brokerage industry, investors prefer brokers that offer a wide variety of digital means for trading or managing portfolios. These brokerages (VFH) benefit when they leverage these digital capabilities to meet their clients’ requirements, which can also improve the brokerage companies’ client engagement levels.
Five financials near buy points are your stocks to watch this week: Square, PayPal, TD Ameritrade, E-Trade Financial and SVB Financial.
Assessing TD Ameritrade Holding Corporation’s (NASDAQ:AMTD) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense checkRead More...
In the second quarter, Interactive Broker Group (IBKR) is expected to witness a drop in its commission revenues sequentially due to a fall in its DARTs (daily average revenue trades). In May, Interactive Broker Group saw 780,000 DARTs—a fall of 4% month-over-month and a rise of 16% YoY (year-over-year). In April, Interactive Brokers Group reported 812,000 DARTs. E*TRADE (ETFC) reported 249,939 DARTs in April.
TD Ameritrade’s (AMTD) PE ratio stood at 16.68x on a next 12-month basis, which implies discounted valuations. The average for TD Ameritrade’s competitors was 24.32x. Interactive Brokers Group (IBKR), E*TRADE Financial (ETFC), and Charles Schwab (SCHW) have PE ratios of 33.03x, 17.45x, and 22.48x, respectively, on a next 12-month basis.
TD Ameritrade’s (AMTD) performance will likely depend on the economic and political factors prevailing in the economy. In the quarter that ended in March, TD Ameritrade’s performance was supported by strong volatility due to the Trump Administration’s announcement about imposing tariffs and interest rate hike expectations. For the company, a rising interest rate environment would mean higher interest income from interest-earning assets, which would boost the interest income.
TD Ameritrade (AMTD) is expected to report an EPS of $0.8 in the fiscal third quarter, which ends in June. Wall Street analysts gave a high estimate of $0.85 and a low estimate of $0.76 for the third-quarter EPS. Sequentially, the company is expected to witness a marginal decline in its trading volumes in the third quarter due to less volatility in April.
TD Ameritrade (AMTD) operates in a very competitive industry. The company needs to retain its clients in order to experience long-term growth. There’s a pressing need to come up with digital tools to make trading easy and accessible.
TD Ameritrade (AMTD) benefited from clients’ higher trading activities in the second quarter, which ended on March 31. Brokerages’ performance would be boosted if equity markets experience high volatility. The volatility would lead to more trading among clients and improve the trading revenues.
Of the six analysts covering Interactive Brokers (IBKR), two recommend “strong buy,” two recommend “hold,” and two recommend “strong sell.” Last month, their ratings were the same. In March, just five analysts were covering the stock, with one recommending “strong buy,” two recommending “hold,” and two recommending “strong sell.”
In the first quarter, Interactive Brokers (IBKR) exceeded analysts’ EPS and revenue expectations, like peers (VFH) Charles Schwab (SCHW) and E*TRADE Financial (ETFC). Meanwhile, competitor TD Ameritrade (AMTD) missed analysts’ EPS estimate but beat their revenue estimate.
Interactive Brokers (IBKR) has an NTM (next-12-month) PE ratio of 32.7x, which is higher than peers’ average of 18.5x. The company’s competitors’ NTM PE ratios are as follows: TD Ameritrade (AMTD): 16.5x Charles Schwab (SCHW): 21.9x E*TRADE Financial (ETFC): 17.0x
Blockchain, the company, which is the world's No. 1 provider of free wallet software for storing cryptocurrency, hit a significant milestone this week.
In the first quarter, trade tensions and interest rate hike expectations made equity markets volatile, resulting in brokerages’ (VFH) customers trading more and boosting brokerages’ revenue. DARTs (daily average revenue trades) are often used to assess brokerages’ performance. The higher the DARTs, the higher brokerages’ trading revenue. However, brokerages’ performance can be impacted by financial downturns, as they limit trading.
Interactive Brokers (IBKR) drew market participants’ attention in the first quarter, primarily because of expectations of higher interest rates and strong volatility. Higher interest rates can improve brokerages’ (VFH) performance, boosting their interest income.
In May, E*TRADE Financial (ETFC) is tracked by 17 analysts. Nine analysts suggested a “strong buy” for ETFC, and two gave “hold” ratings. The remaining six analysts suggested a “buy” on E*TRADE Financial. These ratings are unchanged from April.
E*TRADE Financial’s (ETFC) price-to-earnings ratio is ~17.1x. This highlights its discounted valuation versus the average PE ratio of its peers of ~24.1x. Among the company’s competitors, Charles Schwab (SCHW), TD Ameritrade Holding (AMTD), and Interactive Brokers Group (IBKR) have price-to-earnings ratios of ~22.5x, ~16.7x, and ~33.1x, respectively, on a next-12-months (or NTM) basis.
TD Ameritrade Institutional wants to make it simple for RIAs to offer socially responsible portfolios to clients. The business, which provides brokerage and custody service to more than 6,000 independent RIAs, is now offering four ESG portfolios on its Model Market Center, WealthManagement.com reports. TD Ameritrade Institutional says they’re designed to be “complete portfolios off the shelf.” Additionally, advisors who use TD Ameritrade Institutional’s Veo brokerage will be able to use a screening tool to see 559 mutual funds that call themselves socially responsible.
On May 14, Charles Schwab (SCHW) released its April metrics. Brokerages (XLF) had a strong 1Q18, with increased volatility boosting their trading revenue. Whereas Charles Schwab, TD Ameritrade (AMTD), E*TRADE Financial (ETFC), and Interactive Brokers Group (IBKR) were boosted by higher volatility and interest rate expectations in 1Q18, they may see lower volatility in 2Q18.