Ameritrade CEO change casts a pall over strong earnings results
Ameritrade this afternoon announced both earnings and revenue that beat Wall Street expectations by a significant margin. However, they also announced that their CEO intends to step down by February 2020. The stock is down slightly in after-hours trading, perhaps partly because of the CEO announcement and partly because the hourly chart is overbought.
However, looking at the chart, I find it hard to believe that Ameritrade won't end the day up tomorrow. The stock broke a trendline today and ended the day right on top of high-volume support. I think it would be hard for this stock to trend down.
Surprisingly, analyst ratings on the stock aren't great, although S&P Capital IQ rates it extremely undervalued and extremely high-quality in terms of fundamentals. With a P/E of 14.5 and 27% GAAP earnings growth year over year, this looks like a buy to me. I can only guess that analysts have concerns about the financial sector overall.
However, looking at the chart, I find it hard to believe that Ameritrade won't end the day up tomorrow. The stock broke a trendline today and ended the day right on top of high-volume support. I think it would be hard for this stock to trend down.
Surprisingly, analyst ratings on the stock aren't great, although S&P Capital IQ rates it extremely undervalued and extremely high-quality in terms of fundamentals. With a P/E of 14.5 and 27% GAAP earnings growth year over year, this looks like a buy to me. I can only guess that analysts have concerns about the financial sector overall.
Comment:
I see now why most traders are hesitating on this. The trend line I drew in the OP was a long-term trend line, but there's a shorter-term trend line we haven't broken yet. We've also recently been printing some bearish divergence on the MACD and RSI. Traders are waiting, apparently, to see tomorrow what the price will do.
