A TD Ameritrade Insider Bought the Stock

TD Ameritrade’s peers include Charles Schwab Corp (NYSE:SCHW), E TRADE Financial Corporation (NASDAQ:ETFC), LPL Financial Holdings Inc (NASDAQ:LPLA), and ING Groep N.V. (NYSE:ING). Charles Schwab is valued at a moderate premium to TD Ameritrade, with a trailing P/E multiple of 23. However, that company did experience revenue and earnings growth- with net income actually up over 20%- last quarter versus a year ago. We would be interested in learning why Charles Schwab is outperforming its peer; if the reasons are sustainable, it might be a “growth at a reasonable price” stock. The flashier E Trade has dipped into the red the past couple of quarters, but Wall Street analysts expect it to recover: the current-year P/E is 20 and the five-year PEG ratio is 0.7 as consensus is for good earnings numbers. We wouldn’t consider E Trade until the company had reported profitability for a quarter or two.

LPL, like TD Ameritrade, has been reporting stable numbers though that stock is also valued at a premium: it trades at 23 times trailing earnings. Expectations are high here as well but we think that we would avoid the stock. ING’s earnings multiples- trailing, and consensus for 2013- are only 6, and the PEG ratio is quite low here as well. This is partly because business has been doing poorly; revenue, for example, fell 24% in its most recent quarterly report compared to the same period in 2011. Still, it is cheap enough at first glance that it might be worth a closer look.

TD Ameritrade and many of its peers don’t appear to be particularly attractive investments. In particular, we would like to see better growth numbers at the earnings multiple the company is currently valued at. Charles Schwab and ING might be worth further research.

Disclosure: I own no shares of any stocks mentioned in this article.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!