If you have been scanning today's entries, or the financial news in general, you have seen a number of brokerage stocks mentioned. The "buy-under" at Bear Stearns (BSC) has that stock plunging and is raising concerns in general. Given the turmoil, I thought it might helpful to take a look at TD Ameritrade Holding Corp. (AMTD), E-Trade Financial Corporation (ETFC), Lehman Brothers Holdings Inc. (LEH), and The Charles Schwab Corporation (SCHW).
Let's start with the Street's opinion, according to Zacks:
- 6 of 9 analysts (67 percent) rank AMTD with a "buy" rating
- 0 of 10 analysts rank ETFC with a "buy" rating
- 7 of 13 analysts (54 percent) rank LEH with a "buy" rating
- 4 of 11 analysts (36 percent) rank SCHW with a "buy" rating
In the post below we saw Ameritrade, Lehman, and Schwab singled out with downbeat comments. It looks as if E-Trade escaped that list because the Street had already abandoned the stock.
Now, let's turn to the weekly charts...
Chart Courtesy of Thomson Financial
Chart Courtesy of Thomson Financial
Chart Courtesy of Thomson Financial
Chart Courtesy of Thomson Financial
Shares of AMTD and SCHW are holding intermediate-term support. If the both stocks stabilize here, it would leave TD Ameritrade continuing its sideways meander and Charles Schwab in its long-term uptrend.
Shares of LEH and ETFC are both trading below support. However, the situation with E-Trade appears to be somewhat different that what Lehman Brothers faces. E-Trade was hit with its much publicized woes last year and the stock appears to be trying to base. The shares hit a low in early January and are still holding above that level.
Meanwhile, Lehman is in the midst of a hard-break down. Its shares are hitting short-term oversold levels (which could support the case for a short-term bounce) but that former support near 50 now looms as overhead resistance.
Copyright Schaeffer's Investment Research http://www.schaeffersresearch.com