Is the $38.9 Price Target For TD Ameritrade Holding Corporation (NYSE:AMTD) Achievable?

Wall Street analysts on the sell-side covering shares of TD Ameritrade Holding Corporation (NYSE:AMTD) have a mean recommendation of 2.9 on the shares.  This is based on a numerical chart where each stock recommendation (Buy,Sell,Hold) is translated into a numerical equivalent.  A low number indicates a Buy and a higher number a Sell.  In terms of where analysts see the stock headed, they have a consensus price target of $38.9  on the shares.

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Traders may be trying to figure out whether it is a good time to enter or exit a position in TD Ameritrade Holding Corporation (NYSE:AMTD). The Average Directional Index or ADX is a technical analysis indicator used to describe if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. Currently, the 14-day ADX is 26.09.  Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.

TD Ameritrade Holding Corporation (NYSE:AMTD) presently has a 14-day Commodity Channel Index (CCI) of 53.39. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings. The 14-day RSI for TD Ameritrade Holding Corporation (NYSE:AMTD) is currently at 46.21, the 7-day stands at 51.22, and the 3-day is sitting at 33.88.

Taking a peek at some Moving Averages, the 200-day is at 49.55, and the 50-day is 41.93. Dedicated investors may be looking to employ another tool for doing technical stock analysis. The Williams Percent Range or Williams %R is a technical indicator that was designed to measure overbought and oversold market conditions. The Williams %R indicator helps show the relative situation of the current price close to the period being observed. TD Ameritrade Holding Corporation (NYSE:AMTD)’s Williams Percent Range or 14 day Williams %R presently is at -26.21. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold.

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet. These numbers are then crunched to create theoretical valuations of companies.

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares. EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital. TD Ameritrade Holding Corporation’s EPS for the trailing 12 months is 3.96. Their EPS should be compared to other companies in the Financial sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share. P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels. Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively. TD Ameritrade Holding Corporation’s P/E ratio is 9.68.

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