By: Michael E. Martinez

E*Trade is a company that provides online brokerage, mortgage and banking services, as well as loans and more. Most of the company's business is done over the Internet. However, E*Trade does have branches in which it reaches customers through automated and live telephone services. By the end of 2004, E*Trade had roughly 3 million active brokerage accounts and about 600,000 active banking accounts. These numbers are higher today.

The company offers stocks, bonds, options, futures, and over 5,000 mutual funds through interactive charts and research reports. Through its banking division, E*Trade offers mortgage products, home equity loans and home equity lines of credit. In recent years, E*Trade has made frequent acquisitions. In December 2005, E*Trade closed the acquisition of BrownCo for $1.6 billion in cash. E*Trade continues to expand over time; however, the current stock price doesn't reflect this.

I think E*Trade is a buy here due to net income expansion and a surge in customers. Last quarter, E*Trade reported its best quarter ever for the company. There has been a strong bull markets in the financials, banking and brokerage sectors of the markets, E*Trade is no exception. The company is also cheaper when it's compared to peers and the financial bull market as a whole. For disclosure reasons, I am a shareholder of E*Trade.