TD Ameritrade Holding Corporation (AMTD): Today's Featured Financial Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

TD Ameritrade Holding Corporation ( AMTD) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day up 0.3%. By the end of trading, TD Ameritrade Holding Corporation fell 28 cents (-1.3%) to $21.13 on heavy volume. Throughout the day, 10 million shares of TD Ameritrade Holding Corporation exchanged hands as compared to its average daily volume of 3.2 million shares. The stock ranged in price between $21.04-$21.56 after having opened the day at $21.18 as compared to the previous trading day's close of $21.41. Other companies within the Financial Services industry that declined today were: Millennium India Acquisition Corporation ( SMCG), down 10.3%, E*Trade Financial ( ETFC), down 8.2%, Paulson Capital ( PLCC), down 7.4%, and China Ceramics ( CCCL), down 7.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

TD Ameritrade Holding Corporation provides securities brokerage services and technology-based financial services to retail investors, traders, and independent registered investment advisors (RIAs) in the United States. TD Ameritrade Holding Corporation has a market cap of $11.52 billion and is part of the financial sector. The company has a P/E ratio of 19.8, above the S&P 500 P/E ratio of 17.7. Shares are up 27.4% year to date as of the close of trading on Wednesday. Currently there are eight analysts that rate TD Ameritrade Holding Corporation a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates TD Ameritrade Holding Corporation as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Gleacher ( GLCH), up 8%, Ladenburg Thalman Financial Services ( LTS), up 6.4%, GAIN Capital Holdings ( GCAP), up 4.8%, and Security National Financial Corporation ( SNFCA), up 4%, were all gainers within the financial services industry with Goldman Sachs Group ( GS) being today's featured financial services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial services industry could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial services industry could consider Proshares Short Financials ( SEF).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

8 Reasons Goldman Sachs CEO Has Every Reason to Be Terrified of Stock Market

8 Reasons Why Lloyd Blankfein Has Every Right to Be 'Unnerved' by This Market

Hurricane Irma Exposes Rising Fear in the Stock Market's Near-Term Future

Storms, Indexes Pose Growing Threats

Massachusetts Opens Inquiry Into 7 Brokerage Firms