State Street Corp (STT): 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.

State Street ( STT) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day down 0.8%. By the end of trading, State Street fell 46 cents (-1.1%) to $41.49 on heavy volume. Throughout the day, 8.3 million shares of State Street exchanged hands as compared to its average daily volume of 3.7 million shares. The stock ranged in price between $41.43-$42.08 after having opened the day at $41.96 as compared to the previous trading day's close of $41.95. Other companies within the Banking industry that declined today were: Atlantic Coast Financial ( ACFC), down 10.7%, VelocityShares 3x Inverse Crude ETN ( DWTI), down 8.6%, VelocityShares 3x Inverse Brent Crude ETN ( DOIL), down 8.2%, and First Financial Service Corporation ( FFKY), down 8%.
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State Street Corporation, a financial holding company, provides various financial products and services to institutional investors worldwide. State Street has a market cap of $20.12 billion and is part of the financial sector. The company has a P/E ratio of 11.4, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 4.2% year to date as of the close of trading on Monday. Currently there are 15 analysts that rate State Street a buy, two analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates State Street as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins, good cash flow from operations, solid stock price performance and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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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