By:
On:
In: Good company, Stock analysis
Tagged:
With: 0 Comments

 

Company name E*TRADE Financial Corp
Stock ticker ETFC
Live stock price [stckqut]ETFC[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $70.32
Target stock price (averages with growth) $161.82
Target stock price (averages with no growth) $53.77
Target stock price (manual assumptions) $51.03

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/etfc

E*Trade Financial Corporation, incorporated on September 4, 2003, is a financial services company. The Company provides online brokerage and related products and services primarily to individual retail investors under the brand E*TRADE Financial. The Company also provides investor-focused banking products, primarily sweep deposits, to retail investors. It provides its services to customers through its digital platforms and network of industry-licensed customer service representatives and Financial Consultants, over the phone and by e-mail. It operates federally chartered savings banks with the primary purpose of maximizing the value of deposits generated through its brokerage business. The Company’s hybrid service delivery model is delivered through various digital platforms: E*TRADE and OptionsHouse products. It offers trading applications for smartphones, tablets and watches, which manages accounts and offers stock and portfolio alerts. Its active trading platform is a software-based trading application that offers trading tools, idea generation and analysis, and advanced portfolio and market tracking. Its digital platforms are complemented by its offline channels, which include its network of customer service representatives and financial consultants and its round the clock customer service available via phone, e-mail and online.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in E*TRADE Financial Corp as long as the indicators that I describe in my book The Confident Investor are favorable.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of E*TRADE Financial Corp calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $45.53
  • Growth: 0.14
  • Current EPS (TTM): $3.88
  • P/E: 11
  • Future EPS Calc: $7.47
  • Future Stock Price Calc: $82.17
  • Target stock price: $51.02

[/s2If]
I hope that this makes you a Confident Investor.