The Zacks Analyst Blog Highlights:Charles Schwab, TD Ameritrade Holding, E*TRADE Financial, Evercore Partners and Medtronic
CHICAGO, Feb. 19, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include The Charles Schwab Corporation (NYSE: SCHW), TD Ameritrade Holding Corporation (NYSE: AMTD), E*TRADE Financial Corporation (Nasdaq: ETFC), Evercore Partners Inc. (NYSE: EVR) and Medtronic (NYSE: MDT).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday's Analyst Blog:
Schwab's January DARTs Climb
In its monthly market activity report for Jan 2013, The Charles Schwab Corporation (NYSE: SCHW) reported Daily Average Revenue Trades (DARTs) of 504,700. This was up 5% from 480,200 in the prior month and 8% from 468,400 in the year-ago month.
Schwab's net new assets bought by the new and existing clients totaled $12.1 billion, plunging 49% from Dec 2012, but surging 70% from Jan 2012. Also, this included a $2.2 billion inflow related to a mutual fund clearing services client. Further, total client assets stood at $2.01 trillion, improving 3% from Dec 2012 and 16% from Jan 2012.
Schwab opened 87,000 new brokerage accounts in the reported month, 10% less than Dec 2012 level, but it climbed 18% from Jan 2012. The company's active brokerage accounts totaled 8.82 million, almost flat compared with the prior-month and up 3% year over year.
Moreover, clients' banking accounts inched up 1% over the prior-month and elevated 11% year over year to 874,000. Moreover, the number of corporate retirement plan participants was 1,554 million, declining 1% from Dec 2012 but improving 3% from Jan 2012.
Peer Performances Earlier this week, TD Ameritrade Holding Corporation (NYSE: AMTD) reported 17% monthly and 3% yearly increases in average U.S. trades in its Activity Report for the month of Jan 2013. For the reported month, DARTs reached 387,000, up from 331,000 recorded in the prior month. The rise mainly resulted from the improvement in the equity markets.
Similarly, E*TRADE Financial Corporation (Nasdaq: ETFC) also reported a rise in its DARTs for Jan 2013. The company's DARTs stood at 153,580, improving 18% from Dec 2012 and 6% from Jan 2012, on the back of increased investments by investors.
Conclusion Amid the challenging economy, rising DARTs and new brokerage accounts will be beneficial for Schwab. Yet, lower trading activities and fluctuating interest rates are expected to continuously impact the company's financials in the near term.
Further, we remain concerned about the company's low capital intensity relative to its peers. However, its focus on low-cost capital structure will help it sustain better results in the upcoming quarters.
Schwab currently retains a Zacks Rank #3 (Hold). However, one of its peers, Evercore Partners Inc. (NYSE: EVR) is more favorably placed and carries a Zacks Rank #1 (Strong Buy).
Earnings Preview: Medtronic
We expect leading medical devices company – Medtronic (NYSE: MDT) to beat expectations when it reports third-quarter 2013 results on Feb 19.
Why a Likely Positive Surprise?
Our proven model shows that Medtronic is likely to beat earnings because it has the right combination of two key ingredients.
Positive Zacks ESP: Earnings ESP (Read: Zacks Earnings ESP: A Better Method), which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is at +2.20%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.
Zacks #2 Rank (Buy): Note that stocks with Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings. The sell rated stocks (#4 and #5) should never be considered going into an earnings announcement.
The combination of Medtronic's Zacks Rank # 2 (Buy) and ESP of +2.20% makes us very confident in looking for a positive earnings beat on Feb 19.
What is Driving the Better Than Expected Earnings?
Medtronic is enjoying market share gain on the back of the Resolute Integrity DES for the treatment of coronary artery disease. Other recently launched products are also contributing to overall growth. The company also reiterated its aim of returning 50% of free cash flow to shareholders and is targeting suitable acquisitions to augment growth. Meanwhile, Medtronic has increased its focus on the emerging markets and is targeting higher revenues from this region.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
SOURCE Zacks Investment Research, Inc.