Bank Of New York Mellon Corp (BK): 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.

Bank of New York Mellon ( BK) pushed the Financial Services industry higher today making it today's featured financial services winner. The industry as a whole closed the day up 0.9%. By the end of trading, Bank of New York Mellon rose 54 cents (2.4%) to $23.43 on heavy volume. Throughout the day, 9.1 million shares of Bank of New York Mellon exchanged hands as compared to its average daily volume of 5.9 million shares. The stock ranged in a price between $22.68-$24.95 after having opened the day at $22.91 as compared to the previous trading day's close of $22.89. Other companies within the Financial Services industry that increased today were: Penson Worldwide ( PNSN), up 14.3%, Ampal-American Israel Corporation ( AMPL), up 9.5%, Asset Acceptance Capital Corporation ( AACC), up 8.1%, and Global X Silver Miners ETF ( SIL), up 7.5%.
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The Bank of New York Mellon Corporation, a financial services company, provides various products and services worldwide. The company offers a range of equity, fixed income, cash, and alternative/overlay products, as well as distributes investment management products. Bank of New York Mellon has a market cap of $26.86 billion and is part of the financial sector. The company has a P/E ratio of 12.3, 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 14.2% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Bank of New York Mellon a buy, two analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Bank of New York Mellon as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

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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