Comerica Inc (CMA): 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.

Comerica ( CMA) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day up 1.1%. By the end of trading, Comerica fell 41 cents (-1.3%) to $31.27 on average volume. Throughout the day, 2.1 million shares of Comerica exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $31.25-$32.20 after having opened the day at $32.13 as compared to the previous trading day's close of $31.68. Other companies within the Banking industry that declined today were: Ohio Legacy Corporation ( OLCB), down 17.5%, Hampton Roads Bankshares ( HMPR), down 10.4%, VelocityShares 3x Inverse Natural Gas ETN ( DGAZ), down 8.8%, and Guaranty Bancorp ( GBNK), down 8.2%.
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Comerica Incorporated, through its subsidiaries, provides financial products and services primarily in Texas, Arizona, California, Florida, and Michigan. Comerica has a market cap of $6.19 billion and is part of the financial sector. The company has a P/E ratio of 13.4, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 23.9% year to date as of the close of trading on Thursday. Currently there are eight analysts that rate Comerica a buy, three analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates Comerica as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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