Deutsche Bank AG (DB): 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.

Deutsche Bank ( DB) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Deutsche Bank fell $1.83 (-4.1%) to $42.46 on average volume. Throughout the day, 3.2 million shares of Deutsche Bank exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $42.27-$42.90 after having opened the day at $42.71 as compared to the previous trading day's close of $44.29. Other companies within the Banking industry that declined today were: Porter Bancorp ( PBIB), down 18.8%, Southcoast Financial Corporation ( SOCB), down 10.8%, Stewardship Financial Corporation ( SSFN), down 6.9%, and Plumas Bancorp ( PLBC), down 6.8%.
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Deutsche Bank Aktiengesellschaft provides investment, financial, and related products and services. Deutsche Bank has a market cap of $40.61 billion and is part of the financial sector. The company has a P/E ratio of eight, below the average banking industry P/E ratio of 11.4 and below the S&P 500 P/E ratio of 17.7. Shares are up 16.9% year to date as of the close of trading on Monday. Currently there is one analyst that rates Deutsche Bank a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Deutsche Bank as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity 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 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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