TD Ameritrade Holding Corporation (AMTD): Today's Featured Financial Services 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.

TD Ameritrade Holding Corporation ( AMTD) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day up 0.5%. By the end of trading, TD Ameritrade Holding Corporation fell 19 cents (-1.2%) to $15.41 on heavy volume. Throughout the day, 9.8 million shares of TD Ameritrade Holding Corporation exchanged hands as compared to its average daily volume of 4.1 million shares. The stock ranged in price between $15.36-$15.87 after having opened the day at $15.62 as compared to the previous trading day's close of $15.60. Other companies within the Financial Services industry that declined today were: Penson Worldwide ( PNSN), down 48.4%, Millennium India Acquisition Corporation ( SMCG), down 7.3%, Ampal-American Israel Corporation ( AMPL), down 7.3%, and SGOCO Group ( SGOC), down 6.5%.
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TD Ameritrade Holding Corporation, through its subsidiaries, provides securities brokerage services and technology-based financial services to retail investors, traders, and independent registered investment advisors (RIAs) in the United States. TD Ameritrade Holding Corporation has a market cap of $8.6 billion and is part of the financial sector. The company has a P/E ratio of 14.4, equal to the average financial services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 0.3% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate TD Ameritrade Holding Corporation a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates TD Ameritrade Holding Corporation as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, disappointing return on equity and feeble growth in the company's earnings per share.

On the positive front, Paulson Capital ( PLCC), up 8.3%, Discover Financial Services ( DFS), up 7.3%, Heckmann ( HEK), up 6.3%, and Saratoga Investment ( SAR), up 6%, were all gainers within the financial services industry with Goldman Sachs Group ( GS) being today's featured financial services industry leader.

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

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