BB&T Corp (BBT): 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.

BB&T ( BBT) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day down 0.6%. By the end of trading, BB&T fell 73 cents (-2.3%) to $31.01 on average volume. Throughout the day, 4.9 million shares of BB&T exchanged hands as compared to its average daily volume of 4.6 million shares. The stock ranged in price between $30.99-$31.74 after having opened the day at $31.71 as compared to the previous trading day's close of $31.74. Other companies within the Banking industry that declined today were: OptimumBank Holdings ( OPHC), down 21.3%, Credit Suisse ( DSLV), down 7.2%, Cascade Bancorp ( CACB), down 6.2%, and United Security ( USBI), down 5.8%.

BB&T Corporation operates as a financial holding company for Branch Banking and Trust Company that provides various banking and trust services for retail and commercial clients. BB&T has a market cap of $22.16 billion and is part of the financial sector. The company has a P/E ratio of 13.2, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 26.1% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate BB&T a buy, one analyst rates it a sell, and 17 rate it a hold.

TheStreet Ratings rates BB&T as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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