ETrade stock: Should you invest in Etrade Stock?

ETrade stock most recently closed at 1.67 a share, down .10 over the past 7 days. Historically, this is an insanely low price for Etrade stock. But is it a good buy? A single digit share price does not necessarily mean that a stock is a good value. A $1.67 stock could be like a $1.67 pack of toilet paper--inexpensive, but painful and worthless.

Let's look at what the experts say. Standard and Poor's Report has a "hold" rating of three stars on the stock which means in their opinion you should not invest in this stock. Curiously though, S&P estimates that Etrade stock will be worth $2 in twelve months. This seems to indicate "buy" because that would be a gain of greater than 15%. The stock market on average gains less than 12% so this would indicate that ETrade is worth looking at. It hasn't helped Etrade's price that earnings have been negative for the past 7 quarters, however their losses continue to shrink.

Reuter's research report has a grim outlook toward ETrade's stock as well giving them an "Underperform" rating on their stock. Analysts concur that ETrade has some good things going for them, but Etrade has taken such a blow in the past 18 months, experts are doubtful Etrade can regain the performance it once had. ETrade's management has wisely decided to focus investing in their core competency which is of course their state of the art trading platform.

ETrade is an excellent stock to invest in for investors who are less risk averse. The stock is trading at a bankruptcy price nearly, while the possiblity of bankruptcy is in fact slim to none. ETrade would most certainly be bought out for their trading platform for more than 5 dollars per share before they would be allowed to fall into bankruptcy. Beside that, Etrade is showing signs that it will recover as they continue to open more and more trader accounts each month.