Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online brokerage E*Trade Financial (NASDAQ:ETFC) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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.

E*Trade facts

Headquarters (Founded)

New York City (1982)

Market Cap

$1.35 Billion


Investment Brokerage

Trailing-12-Month Revenue

($1.41 Billion)


CEO Donald Layton

CFO Bruce Nolop

Return on Assets (Average, Past Three Years)



Charles Schwab (NASDAQ:SCHW)


CAPS Members Bullish on ETFC Also Bullish on:

Bank of America (NYSE:BAC)

General Electric (NYSE:GE)

CAPS Members Bearish on ETFC Also Bearish on:

Merrill Lynch (NYSE:MER)

Citigroup (NYSE:C)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

Over on CAPS, 275 of the 329 All-Star members who have rated E*Trade -- some 84% -- believe the stock will outperform the S&P 500 going forward. These bulls include 5WOODWARRIOR and iceberg1116, both of whom are ranked in the top 20% of our community.

Two days ago, 5WOODWARRIOR noted: "[S]horing up leaks by selling off assets is a recipe for success in the long term. E Trade is back on track to what they do best."

An older pitch from iceberg1116 shares that contrarian spirit. In May, our CAPS member cited E*Trade's core strength as a reason to keep the faith:

Though the company had put itself in a very bad position by betting incorrectly in subprime, [collateralized debt obligations], [Alt-A], etc, I believe strongly in the products that they offer and the platform that they provide for trading. Though I don't have an account with them and will never have one [because of] employment restrictions, it seems like they constantly have new ideas and provide new tools for clients. These are things that won't be overlooked by account holders that are looking to escape the high fees and commission of traditional brokerage. I'm willing to bet that the company as a whole will come out of the mess stronger than ever.

What do you think about E*Trade, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Charles Schwab is a Motley Fool Stock Advisor recommendation. Bank of America is an Income Investor pick. The Fool's disclosure policy always gets a perfect score.