Charles Schwab Corp (SCHW): 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.

Charles Schwab ( SCHW) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Charles Schwab fell 14 cents (-1.1%) to $12.76 on heavy volume. Throughout the day, 13.8 million shares of Charles Schwab exchanged hands as compared to its average daily volume of nine million shares. The stock ranged in price between $12.66-$12.93 after having opened the day at $12.90 as compared to the previous trading day's close of $12.90. Other companies within the Financial Services industry that declined today were: Penson Worldwide ( PNSN), down 10.3%, SGOCO Group ( SGOC), down 8.3%, China Ceramics ( CCCL), down 3.8%, and Ladenburg Thalman Financial Services ( LTS), down 3.7%.
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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 $16.41 billion and is part of the financial sector. The company has a P/E ratio of 19.5, 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 14.6% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Charles Schwab a buy, two analysts rate 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, Security National Financial Corporation ( SNFCA), up 19%, Millennium India Acquisition Corporation ( SMCG), up 12%, Consumer Portfolio Services ( CPSS), up 9.3%, and Noah Holdings ( NOAH), up 7.9%, were all gainers within the financial services industry with Invesco ( IVZ) 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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