Strong On High Volume: E*TRADE Financial (ETFC)
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified E*TRADE Financial as such a stock due to the following factors:
- ETFC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $74.8 million.
- ETFC has traded 267,876 shares today.
- ETFC is trading at 2.15 times the normal volume for the stock at this time of day.
- ETFC is trading at a new high 3.02% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on ETFC:
E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand name. It operates through two segments, Trading and Investing, and Balance Sheet Management. ETFC has a PE ratio of 19. Currently there are 7 analysts that rate E*TRADE Financial a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for E*TRADE Financial has been 3.6 million shares per day over the past 30 days. E*TRADE Financial has a market cap of $7.0 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.38 and a short float of 1.7% with 1.61 days to cover. Shares are down 15.1% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates E*TRADE Financial as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins, good cash flow from operations, impressive record of earnings per share growth and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 282.5% when compared to the same quarter one year prior, rising from $40.00 million to $153.00 million.
- 49.19% is the gross profit margin for E TRADE FINANCIAL CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 30.84% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 118.11% to $96.00 million when compared to the same quarter last year. In addition, E TRADE FINANCIAL CORP has also vastly surpassed the industry average cash flow growth rate of -184.85%.
- E TRADE FINANCIAL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, E TRADE FINANCIAL CORP reported lower earnings of $0.90 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus $0.90).
- Despite the weak revenue results, ETFC has outperformed against the industry average of 24.4%. Since the same quarter one year prior, revenues slightly dropped by 1.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full E*TRADE Financial Ratings Report.
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