4-Star Stocks Poised to Pop: E*TRADE
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, retail broker E*TRADE Financial (NAS: ETFC) has earned a respected four-star ranking.
With that in mind, let's take a closer look at E*TRADE's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||New York (1982)|
|Market Cap||$3.1 billion|
|Trailing-12-Month Revenue||$1.4 billion|
|Management||CEO Steven Freiberg|
CFO Matthew Audette
|Return on Equity (average, past 3 years)||(12.7%)|
|Cash/Debt||$3.8 billion / $10.1 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 2,764 members who have rated E*TRADE believe the stock will outperform the S&P 500 going forward.
First, in a bit of old news, they are still refocusing their business back to being a strong discount broker. It has proven to be profitable in the past and has reaffirmed this fact in the few quarters as well.
Second, [E*TRADE] has continued and is continuously running off its bad loan book, with the possibility of running it off entirely by 2014. ...
Third, they are doubling their sales team as they look to add more retirement accounts which could prove to be a huge boost to their EPS if it can be accomplished effectively. ...
With future account growth and the possibility of finishing off their loan book by 2014, I am optimistic that [E*TRADE] could make a return to the high teens in the not so distant future and higher yet in the long term.
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At the time this article 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.