Charles Schwab Corp (SCHW): 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.

Charles Schwab ( SCHW) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 0.1%. By the end of trading, Charles Schwab fell 15 cents (-1.1%) to $13.43 on average volume. Throughout the day, 8.4 million shares of Charles Schwab exchanged hands as compared to its average daily volume of 8.1 million shares. The stock ranged in price between $13.34-$13.54 after having opened the day at $13.53 as compared to the previous trading day's close of $13.58. Other companies within the Financial sector that declined today were: Bank VA Chesterfield ( BOVA), down 16.7%, HMN Financial ( HMNF), down 12.5%, Southern Connecticut Bancorp ( SSE), down 12.2%, and Life Partners Holdings ( LPHI), down 10.7%.
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The Charles Schwab Corporation, through its subsidiaries, provides securities brokerage, banking, and related financial services to individuals and institutional clients. Charles Schwab has a market cap of $17.12 billion and is part of the financial services industry. The company has a P/E ratio of 20.4, equal to the average financial services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 20.6% year to date as of the close of trading on Friday. Currently there are four analysts that rate Charles Schwab a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Charles Schwab as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.

On the positive front, Ohio Legacy Corporation ( OLCB), up 16.6%, Carrollton Bancorp ( CRRB), up 9.4%, Bbva Banco FrancesS.A ( BFR), up 8.7%, and Grupo Financiero Galicia ( GGAL), up 8%, were all gainers within the financial sector with New York Community Bancorp ( NYB) 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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