E*TRADE (NASDAQ:ETFC) Should Continue to be Momentum Play

FBR Capital said they're maintaining their "Outperform" rating on E*TRADE (NASDAQ:ETFC), citing their growing momentum which has made them a legitimate turnaround story.

"Core brokerage metrics rebounded in October, surpassing our expectations, yet we continue to view E*TRADE as a credit and capital turnaround story that should continue to gain momentum as its portfolio continues to season and earnings power grows. We expect the company to continue to build capital levels to drive further de-leveraging, which should return the company to a more normalized earnings level," said FBR.

E*Trade closed Wednesday at $14.68, losing $0.08, or 0.54 percent. FBR has a price target of $20 on the stock.

Trading activity in October increased from September, rising 14 percent, although when compared with October of last year, it was down 18 percent.

E*Trade's overall number of accounts dropped in October from 4.41 million in the same month last year to 4.22 million this October.