E*Trade Financial Corp (ETFC): Today's Featured Financial Services Winner

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.

E*Trade Financial ( ETFC) pushed the Financial Services industry higher today making it today's featured financial services winner. The industry as a whole closed the day up 0.2%. By the end of trading, E*Trade Financial rose 21 cents (2.5%) to $8.60 on light volume. Throughout the day, 3.3 million shares of E*Trade Financial exchanged hands as compared to its average daily volume of 5.9 million shares. The stock ranged in a price between $8.34-$8.71 after having opened the day at $8.38 as compared to the previous trading day's close of $8.39. Other companies within the Financial Services industry that increased today were: Manhattan Bridge Capital ( LOAN), up 6.5%, Tile Shop Holdings ( TTS), up 5.3%, JWC Acquisition ( JWCA), up 5.3%, and BGC Partners ( BGCP), up 4.3%.

E*TRADE Financial Corporation, a financial services company, provides online brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand in the United States. E*Trade Financial has a market cap of $2.43 billion and is part of the financial sector. The company has a P/E ratio of 14.9, above the average financial services industry P/E ratio of 14.7 and below the S&P 500 P/E ratio of 17.7. Shares are up 5.4% year to date as of the close of trading on Monday. Currently there are two analysts that rate E*Trade Financial a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates E*Trade Financial as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and feeble growth in the company's earnings per share.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial services industry could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial services industry could consider Proshares Short Financials ( SEF).
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