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TD Ameritrade (AMTD) Outpaces Stock Market Gains: What You Should Know

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TD Ameritrade (AMTD - Free Report) closed at $51.46 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.63%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.54%.

Prior to today's trading, shares of the online brokerage had gained 27.86% over the past month. This has outpaced the Finance sector's gain of 0.06% and the S&P 500's gain of 1.07% in that time.

Investors will be hoping for strength from AMTD as it approaches its next earnings release. The company is expected to report EPS of $0.76, down 31.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.28 billion, down 15.28% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3 per share and revenue of $5.06 billion. These totals would mark changes of -27.36% and -15.89%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for AMTD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.53% higher. AMTD currently has a Zacks Rank of #3 (Hold).

Digging into valuation, AMTD currently has a Forward P/E ratio of 16.96. For comparison, its industry has an average Forward P/E of 11.15, which means AMTD is trading at a premium to the group.

Meanwhile, AMTD's PEG ratio is currently 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMTD's industry had an average PEG ratio of 1.53 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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