Should I still rely on ETRADE Financial management in February 2019?
 | By Ellen Johnson | Macroaxis Story |
In this post I will go over ETRADE Financial. I will analyze why it could be a much better year for ETRADE Financial shareholders. This firm Piotroski F Score is 6 - Healthy. Given the investment horizon of 30 days, ETRADE Financial is expected to generate 1.8 times less return on investment than the market. In addition to that, the company is 1.19 times more volatile than its market benchmark. It trades about 0.01 of its total potential returns per unit of risk. The market is currently generating roughly 0.02 per unit of volatility. What is ETRADE Financial Target Price Odds to finish over Current Price? Depending on normal probability distribution, the odds of ETRADE Financial to move above current price in 30 days from now is about 24.76%. The ETRADE Financial Corporation probability density function shows the probability of ETRADE Financial Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, ETRADE Financial has beta of 0.4136 suggesting as returns on market go up, ETRADE Financial average returns are expected to increase less than the benchmark. However during bear market, the loss on holding ETRADE Financial Corporation will be expected to be much smaller as well. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. ETRADE Financial is significantly underperforming S&P 500.
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Reviewed by Raphi Shpitalnik
E*TRADE FINL CORP currently holds roughly 1.83B in cash with 2.4B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 7.04. ETRADE Financial dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.05 per share. Earning per share calculations of the stock is based on official Zacks consensus of 5 analysts regarding ETRADE Financial future annual earnings. Given the historical accuracy of 81.87%, the future earnings per share of the company is estimated to be 1.8257 with lowest and highest values of 1.77 and 1.85 respectively. Please note that this consensus of annual earnings estimates for the organisation is an estimate of EPS before non-recurring items and including employee stock options expenses.
How important is ETRADE Financial's Liquidity
ETRADE Financial financial leverage refers to using borrowed capital as a funding source to finance ETRADE Financial LLC ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ETRADE Financial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to ETRADE Financial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of ETRADE Financial's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between ETRADE Financial's total debt and its cash.
ETRADE Financial Correlation with Peers
Investors in ETRADE can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in ETRADE Financial LLC. Diversification will allow for the same portfolio return with reduced risk. The correlation table of ETRADE Financial and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities ETRADE is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of ETRADE for more details
What is driving ETRADE Financial Investor Appetite?
The current investor indifference towards the small price fluctuations of ETRADE Financial could raise concerns from investors as the firm closed today at a share price of 48.4815 on 1870029.000 in volume. The company management did not add any value to ETRADE Financial investors in December. However, most investors can still diversify their portfolios with ETRADE Financial to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.2787. The current volatility is consistent with the ongoing market swings in December 2018 as well as with ETRADE Financial unsystematic, company specific events. ETRADE Financial makes 38.99% probability of bankruptcy. ETRADE Financial is selling for 49.72. This is 0.02% increase. Today lowest is 48.4815. ETRADE Financial Average Equity is increasing over the last 5 years. Moreover, ETRADE Financial Total Liabilities is increasing over the last 5 years. The current value of ETRADE Financial Total Liabilities is 34,843,802,891. To conclude, our prevailing 'Buy vs. Hold vs. Sell' recommendation on the company is Strong Hold. ETRADE Financial is currently overvalued with below average probability of bankruptcy for the next two years.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of ETRADE Financial LLC. Please refer to our Terms of Use for any information regarding our disclosure principles.