Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, retail broker E*TRADE Financial (NASDAQ: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.
E*TRADE facts
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Headquarters (Founded) |
New York City (1982) |
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Market Cap |
$2.82 billion |
|
Industry |
Investment brokerage |
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Trailing-12-Month Revenue |
$130.74 million |
|
Management |
Chairman/CEO Donald Layton (since 2007) |
|
Return on Equity (Average, Past 3 Years) |
(34.9%) |
|
Competitors |
Charles Schwab (NASDAQ:SCHW) |
|
CAPS Members Bullish on ETFC Also Bullish on |
Citigroup (NYSE:C) |
|
CAPS Members Bearish on ETFC Also Bearish on |
Bank of America (NYSE:BAC) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 92% of the 566 All-Star members who have rated E*TRADE believe the stock will outperform the S&P 500 going forward. These bulls include mrindependent and TMFSTX, both of whom are ranked in the top 3% of our community.
Just two days ago, mrindependent predicted that E*TRADE would eventually trade higher:
Selling for 0.7 times book value, [E*TRADE] is a rapidly growing brokerage that is NOT earning money. … [I]f the company makes turns a profit anytime soon, its price will soar. Even if the company never turns a profit, it is an attractive buyout candidate. For this company, survival equals success. Anything other than bankruptcy will lead to a nice gain.
In an earlier pitch, TMFSTX expanded on the stock as a tempting takeover target:
[T]hey get a green thumb from me on that basis that despite some still shaky sub-prime loans on the books that they have a once again growing brokerage business in a mature, efficient, high margin environment. [E*TRADE] also has excellent tools, customer interfaces, and in my experience -- customer service. Mostly they look like a really sweet target for a takeover by one of the other houses.
What do you think about E*TRADE, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!





