Whether at the grocery store, the clothing shop, or the repair shop, current economic conditions have consumers bargain shopping and comparing price tags. When it comes to buying stock, though, is it wise to make purchases based on price alone? I look at four stocks that are currently trading under $20 that have recently received a “Buy” recommendations to see if they warrant further consideration, and if so, for whom.

TD Ameritrade Holding Corp. (AMTD) – Currently trading near $15, this owner of discount financial services/securities brokerage websites has ranged from $13.43 to $22.90 over the past 52 weeks. Its dividend yield is 1.30 percent or $0.20 a share. Earnings per share is $1.02, and price to earnings ratio is 14.94. Market capitalization is $8.61 billion. AMTD is showing a decline in quarterly revenue of 0.40 percent and a decline in quarterly earnings of 12.30 percent.

E*Trade Financial Corporation (ETFC), another online brokerage services provider, is currently trading near $9.31 and has ranged from $7.74 to $18.13 over the past 52 weeks. It does not pay a dividend. Earnings per share is $0.30,and price to earnings ratio is 30.73. Market capitalization is $2.51 billion. It is showing much better year-over-year growth. Quarterly revenue growth is 13 percent, and quarterly earnings growth is 34.30 percent.

Both companies rely heavily on revenues from trades, so when volume is high, revenue follows. Recent turmoil in the markets has led to active trading, and industry professionals expect earnings to reflect this in upcoming financial statements. To continue reading, click here