Let’s take a brief check on where covering Street analysts see E*TRADE Financial Corporation (NASDAQ:ETFC) moving in the near-term. Analysts taken into consideration by Thomson Reuters have a current consensus target on company shares of $45.14.
Individuals invest in order to get a return on the investment. Nobody enters the equity markets with the hope of losing money. Returns on investments may come in different forms. With any stock investment, there may be some level of risk involved. Understanding the risk is important and should be considered very carefully. Of course, the stock may go up and become a winner, or shares could sour and turn into losers. Returns in the stock market may often mimic the amount of risk. Generally speaking, the greater the risk, the greater the reward. With the greater chance of reward comes the greater chance of losses. Keeping a balanced and diversified portfolio can help manage the risk associated with investing in the stock market.
Analysts and investors may use different metrics in order to calculate a price target projection. A very common metric used is the price to earnins ratio of a company. This calculation comes from dividing the current share price by the projected earnings per share. At the time of writing, E*TRADE Financial Corporation has a P/E Ratio of 19.26. Investors may also examine a company’s PEG or price to earnings growth ratio. The PEG ratio represents the ratio of the price to earnings to the anticipated future growth rate of the company. A company with a PEG Ratio below one may be seen as undervalued while a PEG Ratio above one may signal that the company is overvalued. A PEG Ratio close to one may be considered to be fair value. Currently, the stock has a PEG Ratio of 1.24.
Let’s take a quick look at stock performance. Shares are currently trading $2.39 away from the 50-day moving average of $38.82 and $5.00 away from the 200-day moving average of $36.21. Shares are currently trading -2.32% away from the 52-week high price of 42.19 and +68.27% off the 52-week low of 24.49. Keeping an eye on the stock price relative to moving averages and yearly highs/lows may help evaluate future stock value.