TD Ameritrade Candle Over Candle Reversal Off the 50 Day MA

Fundamentally, TD Ameritrade is struggling but after an earnings and revenue beat on October 24, 2017, and a Deutsche Bank upgrade today, things may be turning around for the company.

TD Ameritrade stock has done a candle over candle reversal off its 50 day moving average support after the company received an upgrade today from Deutsche Bank AG. Deutsche Bank AG upgraded the stock to a Buy rating from Hold, and set the price target at $55. Deutsche Bank has one of the most popular analysts divisions because of their excellent track record.

TD Ameritrade announced its earnings back on October 24, 2017. The company reported EPS of $0.49 versus the $0.46 estimate. Revenue also beat coming in at $983 million versus the $958.57 million estimate. TD Ameritrade’s quarterly revenue was up an impressive 18.6% year-over-year.

Back on September 18, 2017, Luxembourg International Ho Td bought 11,074,197 shares @ $36.12 for a total transaction valued at nearly $400 million. Wow!

On November 10, 2017, TD Ameritrade reported that as of the end of October, clients made an average of 680,000 trades each day, which marks a 55% increase from a year ago and a 19% increase from September. Total client assets hit $1.14 trillion at the end of October, up 49% from last year.

TD Ameritrade Holding Corporation is a provider of securities brokerage services and related technology-based financial services. The Company provides its services to retail investors, traders and independent registered investment advisors (RIAs). You can read more about the company on their website.

TD Ameritrade Stock Chart

We had a beautiful pocket pivot signal on Monday, November 13, 2017, which confirmed the candle over candle reversal off the 50 day moving average line. The rising large players volume and Twiggs Money Flow are also bullish.

We are betting that TD Ameritrade stock is in a continuation pattern. Make sure to review this swing trading lesson on continuation patterns.

AMTD stock is a good long setup. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at $50.52. Right above this resistance zone may be a good entry point.

TD Ameritrade Holding Corporation Review
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Summary

Profitability

AMTD's Return On Assets of 2.81% is among the best of the industry. AMTD does better than the industry average Return On Assets of 0.83%. AMTD has a Return On Equity of 15.49%. This is among the best returns in the industry. The industry average is 11.17%. AMTD outperforms 82% of its industry peers. AMTD's Profit Margin of 24% is among the best of the industry. AMTD does better than the industry average Profit Margin of 9.78%. AMTD has a Piotroski-F score of 5. This indicates an average health and profitability for AMTD.

Valuation

The Forward Price/Earnings Ratio of 21.81 indicates a rather expensive current valuation of AMTD. With a price book ratio of 4.81, AMTD is valued correctly. The Price/Earnings Ratio is 31.15, which means the current valuation is very expensive for AMTD. With a Price/Earning Ratio of 31.15, AMTD is valued a higher than the industry average, which is at 20.80. 85% of the companies listed in the same industry are cheaper than AMTD! The high PEG Ratio, which compensates the Price/Earnings for growth, indicates an expensive valuation of the company. When comparing the price book ratio of AMTD to the average industry price book ratio of 1.64, AMTD is valued more expensive than its industry peers. 88% of the companies listed in the same industry are valued cheaper. Compared to an average industry Enterprise Value to EBITDA ratio of 11.19, AMTD is valued more expensive than its industry peers.

Growth

Based on estimates for the next 2 years, AMTD will show a very strong growth in Earnings Per Share. The EPS will grow by 20.25% on average per year. The EPS growth is accelerating: in the next 2 years the growth will be better than in the last years. AMTD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.68%. Measured over the past 5 years, AMTD shows a small growth in Earnings Per Share. The EPS has been growing by 8.58% on average per year. Revenue has been growing slightly by 5.95% in the past year. Revenue has been growing slightly by 5.94% on average over the past 5 years.

Health

A Current Ratio of 1.16 indicates that AMTD should not have too much problems paying its short term obligations. AMTD has a Quick Ratio of 1.16. This is a normal value and indicates that AMTD is financially healthy and should not expect problems in meeting its short term obligations. The Altman-Z score is in line with the industry averages, which is at 0.83. The Piotroski-F score of AMTD is 5. This is a neutral score and indicates average health and profitability for AMTD. When comparing the Current Ratio of AMTD to the average industry Current Ratio of 1.48, AMTD is less able to pay its short term obligations than its industry peers. When comparing the Quick Ratio of AMTD to the average industry Current Ratio of 1.48, AMTD is less able to pay its short term obligations than its industry peers. Compared to an average industry Debt to Equity Ratio of 0.18, AMTD is a more dependent on financing than its industry peers. AMTD has an Altman-Z score of 1.29. This is a bad value and indicates that AMTD is not financially healthy and even has some risk of bankruptcy.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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