Royal Bank Of Canada (RY): Today's Featured Banking Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Royal Bank of Canada ( RY) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Royal Bank of Canada fell 58 cents (-1.1%) to $53.96 on light volume. Throughout the day, 372,156 shares of Royal Bank of Canada exchanged hands as compared to its average daily volume of 699,700 shares. The stock ranged in price between $53.69-$54.33 after having opened the day at $54.09 as compared to the previous trading day's close of $54.54. Other companies within the Banking industry that declined today were: Atlantic Coast Financial ( ACFC), down 8.5%, Credit Suisse ( UOIL), down 7.8%, PSB Holdings ( PSBH), down 6.6%, and Plumas Bancorp ( PLBC), down 6.4%.

Royal Bank of Canada provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services under the RBC name worldwide. Royal Bank of Canada has a market cap of $74.58 billion and is part of the financial sector. The company has a P/E ratio of 12.5, below the average banking industry P/E ratio of 16.5 and below the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate Royal Bank of Canada a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Royal Bank of Canada as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and increase in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the banking industry could consider KBW Bank ETF ( KBE) while those bearish on the banking industry could consider ProShares Short KBW Regional Bankng ( KRS).
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