Analyst Review Alert: E*TRADE Financial Corp (NASDAQ:ETFC)

Analysts are weighing in on how E*TRADE Financial Corp (NASDAQ:ETFC) , might perform in the near term. Wall Street analysts have a much favorable assessment of the stock, with a mean rating of 1.9. The stock is rated as buy by 9 analysts, with 3 outperform and 2 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 14.00 analysts offering adjusted EPS forecast have a consensus estimate of $0.39 a share, which would compare with $0.25 in the same quarter last year. They have a high estimate of $0.42 and a low estimate of $0.36. Revenue for the period is expected to total nearly $475.53M from $445.00M the year-ago period.

For the full year, 14.00 Wall Street analysts forecast this company would deliver earnings of 1.64 per share, with a high estimate of $1.72 and a low estimate of $1.50. It had reported earnings per share of $1.17 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $1.91B versus 1.43B in the preceding year.

The analysts project the company to maintain annual growth of around 20.38% percent over the next five years as compared to an average growth rate of 10.61% percent expected for its competitors in the same industry.

Among the 13 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for ETFC is $30.00 but some analysts are projecting the price to go as high as $32.00. If the optimistic analysts are correct, that represents a 21 percent upside potential from the recent closing price of $26.48. Some sell-side analysts, particularly the bearish ones, have called for $27.00 price targets on shares of E*TRADE Financial Corp (NASDAQ:ETFC) .

In the last reported results, the company reported earnings of $0.25 per share, while analysts were calling for share earnings of $0.27. It was an earnings surprise of -7.40%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand name. It operates through two segments, Trading and Investing, and Balance Sheet Management. The Trading and Investing segment offers retail brokerage products and services, investor-focused banking products, and corporate services. The Balance Sheet Management segment manages asset allocation; loans previously originated by the company or purchased from third parties; deposits and customer payables; and credit, liquidity, and interest rate risk. The company provides its services to customers through digital platforms; and a network of customer service representatives and financial consultants through phone, email, and online at two branches, as well as in person through 30 branches across the United States. E*TRADE Financial Corporation was incorporated in 1982 and is headquartered in New York, New York.