4-Star Stocks Poised to Pop: TD AMERITRADE

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, discount brokerage TD AMERITRADE (NAS: AMTD) has earned a respected four-star ranking.

With that in mind, let's take a closer look at TD AMERITRADE's business and see what CAPS investors are saying about the stock right now.

TD AMERITRADE facts

Headquarters (founded)

Omaha, Neb. (1971)

Market Cap

$10.7 billion

Industry

Investment banking and brokerage

Trailing-12-Month Revenue

$2.7 billion

Management

CEO Fredric Tomczyk (since 2008)
CFO William Gerber (since 2006)

Return on Equity (average, past 3 years)

16.3%

Cash/Debt

$7.5 billion / $1.3 billion

Dividend Yield

1.3%

Competitors

Charles Schwab
E*TRADE Financial
FMR

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 640 members who have rated TD AMERITRADE believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, RScottK26, succinctly summed up the bull case for our community:

S&P just raised [TD AMERITRADE's] credit rating. ... A rising market will bring more retail trades for them. A recovering economy and job market, tempered with people being a little gun-shy, will mean more saving and investing. And they have a better [balance sheet] than their competition. I definitely don't love [TD AMERITRADE's] debt load, but at 1/8 their market cap it looks a lot better than [E*TRADE's] which is about 4 TIMES their mkt cap!

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, TD Amertriade may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of TD AMERITRADE and Charles Schwab. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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