Goldman Sachs Group Inc (GS): 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.

Goldman Sachs Group ( GS) pushed the Financial Services industry higher today making it today's featured financial services winner. The industry as a whole closed the day up 0.1%. By the end of trading, Goldman Sachs Group rose $1.55 (1.3%) to $118.24 on average volume. Throughout the day, 4.1 million shares of Goldman Sachs Group exchanged hands as compared to its average daily volume of 4.1 million shares. The stock ranged in a price between $116.69-$118.46 after having opened the day at $117.40 as compared to the previous trading day's close of $116.69. Other companies within the Financial Services industry that increased today were: Direct Markets Holdings ( MKTS), up 10.8%, Heckmann ( HEK), up 9%, Och-Ziff Capital Management Group ( OZM), up 5.4%, and GFI Group ( GFIG), up 4.3%.
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The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services, as well as a range of financial services to corporations, financial institutions, governments and high-net-worth individuals worldwide. Goldman Sachs Group has a market cap of $54.98 billion and is part of the financial sector. The company has a P/E ratio of 16.8, equal to the average financial services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 26.8% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Goldman Sachs Group a buy, two analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Goldman Sachs Group as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, increase in stock price during the past year and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and deteriorating net income.

On the negative front, China Ceramics ( CCCL), down 22.1%, Millennium India Acquisition Corporation ( SMCG), down 18.5%, SGOCO Group ( SGOC), down 12.1%, and Ampal-American Israel Corporation ( AMPL), down 10%, were all laggards within the financial services industry with Equifax ( EFX) being today's financial services industry laggard.

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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