UPDATE: Goldman Sachs Upgrades E Trade, Sees 24% Upside

E TRADE Financial Corporation (NASDAQ: ETFC) shares got oversold in the recent market meltdown and now might offer investors a 24 percent upside, an analyst said Monday.

The online trading company is down nearly 14 percent since market highs in September. It's expected to post earnings growth of 37 percent Tuesday after the market closes.

Goldman Sachs' Alexander Blostein boosted his rating on E Trade to Conviction Buy on Monday, saying the market has also overreacted recently on several comparable stocks.

Blostein also upgraded TD Ameritrade Holding Corp. (NYSE: AMTD) to Buy. Ameritrade shares are down nearly 12 percent in the past month.

Ameritrade is expected to post October 28 ob $0.36 per share, unchanged from a year earlier.

Blostein also boosted Bank of New York Mellon Corp. (NYSE: BK) to Hold, from Sell, citing a better balance of risk versus reward. Last Friday, the company beat Wall Street's quarterly earnings estimate by nearly 5 percent.

E Trade changed hands recently at $20.42 per share, up 1.5 percent; Ameritrade was nearly unchanged at $30.07 per share, while Bank of New York was also mostly unmoved at $30.07 per share.