NEW YORK, Sept 19 (Reuters) - Shares of TD Ameritrade Holding Corp, could move higher as investors continue to migrate to the online broker from big investment firms, Barron's said in its latest edition.
Clients placed a record 413,000 trades a day with the Omaha, Nebraska-based company during its fiscal third quarter that ended in June, Barron's said. Moreover, it collected net new assets of $28 billion in the year through June 30, a 12 percent annualized rate of growth.
'The firm is also gaining from the 'breakaway broker' phenomenon, as more and more brokers are choosing to operate independently as registered investment advisors and using TD Ameritrade for their 'back office,' needs, Barron's said.
Thanks to its growth in assets, the company is on track to deliver earnings gains of 19 percent in fiscal 2011 and nearly 30 percent in fiscal 2012, based on consensus Wall Street estimates, the report said.
'Yet, the company isn't getting a lot of credit for this increase, and that's resulted in a wide gap between its expected growth and its stock price,' Barron's said.
TD Ameritrade shares trade at only 12.8 times expected fiscal 2011 per share earnings, and at 9.9 times 2012. By contrast, Barron's said rival broker Charles Schwab Corp trades at 25 times this year's expected earnings and 15.3 times 2011 consensus estimates.
(Reporting by Ransdell Pierson; Editing by Marguerita Choy) Keywords: TDAMERITRADE Barron's (Reuters Messaging: ransdell.pierson.reuters.com@reuters.net; 646-223-6034; ransdell.pierson@reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Clients placed a record 413,000 trades a day with the Omaha, Nebraska-based company during its fiscal third quarter that ended in June, Barron's said. Moreover, it collected net new assets of $28 billion in the year through June 30, a 12 percent annualized rate of growth.
'The firm is also gaining from the 'breakaway broker' phenomenon, as more and more brokers are choosing to operate independently as registered investment advisors and using TD Ameritrade for their 'back office,' needs, Barron's said.
Thanks to its growth in assets, the company is on track to deliver earnings gains of 19 percent in fiscal 2011 and nearly 30 percent in fiscal 2012, based on consensus Wall Street estimates, the report said.
'Yet, the company isn't getting a lot of credit for this increase, and that's resulted in a wide gap between its expected growth and its stock price,' Barron's said.
TD Ameritrade shares trade at only 12.8 times expected fiscal 2011 per share earnings, and at 9.9 times 2012. By contrast, Barron's said rival broker Charles Schwab Corp trades at 25 times this year's expected earnings and 15.3 times 2011 consensus estimates.
(Reporting by Ransdell Pierson; Editing by Marguerita Choy) Keywords: TDAMERITRADE Barron's (Reuters Messaging: ransdell.pierson.reuters.com@reuters.net; 646-223-6034; ransdell.pierson@reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.