Dow Today: Bank Of America Corporation (BAC) Leads The Day Higher, Pfizer (PFE) Lags

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.

The Dow Jones Industrial Average ( ^DJI) is trading up 64 points (+0.5%) at 13,603 as of Friday, Sep 14, 2012, 9:40 a.m. ET. During this time, 83.9 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 581.5 million. The NYSE advances/declines ratio sits at 1,968 issues advancing vs. 633 declining with 151 unchanged.
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The Dow component leading the way higher looks to be Bank of America Corporation (NYSE: BAC), which is sporting a 38-cent gain (+4%) bringing the stock to $9.78. This single gain is lifting the Dow Jones Industrial Average by 2.88 points or roughly accounting for 4.5% of the Dow's overall gain. Volume for Bank of America Corporation currently sits at 51.3 million shares traded vs. an average daily trading volume of 131.9 million shares.

Bank of America Corporation has a market cap of $96.67 billion and is part of the financial sector and banking industry. Shares are up 69.1% year to date as of Thursday's close. The stock's dividend yield sits at 0.4%.

Bank of America Corporation, through its subsidiaries, provides various banking and financial products and services to individual consumers, small-and middle-market businesses, institutional investors, corporations, and governments in the United States and internationally. The company has a P/E ratio of 7.1, below the average banking industry P/E ratio of 9.5 and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Bank of America Corporation as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow.

Holding back the Dow today is Pfizer (NYSE: PFE), which is lagging the broader Dow index with a 30-cent decline (-1.2%) bringing the stock to $23.95. Volume for Pfizer currently sits at 2.2 million shares traded vs. an average daily trading volume of 30.5 million shares.

Pfizer has a market cap of $179.79 billion and is part of the health care sector and drugs industry. Shares are up 12.1% year to date as of Thursday's close. The stock's dividend yield sits at 3.7%.

Pfizer Inc., a biopharmaceutical company, engages in the discovery, development, manufacture, and sale of medicines for people and animals worldwide. The company has a P/E ratio of 20.4, above the average drugs industry P/E ratio of 17.8 and above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Pfizer as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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