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

E*Trade Financial ( ETFC) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole was unchanged today. By the end of trading, E*Trade Financial fell 14 cents (-1.4%) to $9.25 on average volume. Throughout the day, 4.5 million shares of E*Trade Financial exchanged hands as compared to its average daily volume of 5.4 million shares. The stock ranged in price between $9.16-$9.42 after having opened the day at $9.38 as compared to the previous trading day's close of $9.38. Other companies within the Financial sector that declined today were: Credit Suisse ( UOIL), down 12.5%, VelocityShares 3x Long Crude ETN ( UWTI), down 11.8%, SP Bancorp ( SPBC), down 11.2%, and Ampal-American Israel Corporation ( AMPL), down 9.7%.
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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 $2.72 billion and is part of the financial services industry. The company has a P/E ratio of 16.7, above the average financial services industry P/E ratio of 16.4 and below the S&P 500 P/E ratio of 17.7. Shares are up 17.9% year to date as of the close of trading on Tuesday. 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.

On the positive front, Income Opportunity Realty Investors ( IOT), up 18.4%, Porter Bancorp ( PBIB), up 15.4%, VelocityShares 3x Inverse Crude ETN ( DWTI), up 12.3%, and Manhattan Bridge Capital ( LOAN), up 11.7%, were all gainers within the financial sector with Banco Santander ( SAN) being today's featured financial sector leader.

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

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