Bank Of America Corporation (BAC): 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.

Bank of America Corporation ( BAC) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Bank of America Corporation fell 18 cents (-1.9%) to $8.92 on average volume. Throughout the day, 144.7 million shares of Bank of America Corporation exchanged hands as compared to its average daily volume of 133.6 million shares. The stock ranged in price between $8.91-$9.21 after having opened the day at $9.17 as compared to the previous trading day's close of $9.10. Other companies within the Banking industry that declined today were: Ohio Legacy Corporation ( OLCB), down 15.4%, Crescent Financial ( CRFN), down 13.4%, Atlantic Coast Financial ( ACFC), down 13%, and Southern Connecticut Bancorp ( SSE), down 9.8%.
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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. Bank of America Corporation has a market cap of $98.18 billion and is part of the financial sector. The company has a P/E ratio of 7.2, below the average banking industry P/E ratio of 9.7 and below the S&P 500 P/E ratio of 17.7. Shares are up 63.8% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Bank of America Corporation a buy, two analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates Bank of America Corporation as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, 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.

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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