NYSE Euronext Inc. (NYX): 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.

NYSE Euronext ( NYX) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day down 0.3%. By the end of trading, NYSE Euronext fell 35 cents (-1.4%) to $24.35 on average volume. Throughout the day, 2.8 million shares of NYSE Euronext exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in price between $24.07-$24.62 after having opened the day at $24.62 as compared to the previous trading day's close of $24.70. Other companies within the Financial Services industry that declined today were: Ampal-American Israel Corporation ( AMPL), down 9.8%, Security National Financial Corporation ( SNFCA), down 9.3%, Manhattan Bridge Capital ( LOAN), down 4.7%, and WisdomTree Global Real Return Fund ( RRF), down 3.4%.
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NYSE Euronext, through its subsidiaries, operates securities exchanges. It operates various stock exchanges, including the New York Stock Exchange (NYSE), NYSE Arca, Inc., and NYSE Amex LLC in the United States; and five European-based exchanges that comprise Euronext N.V. NYSE Euronext has a market cap of $6.14 billion and is part of the financial sector. The company has a P/E ratio of 12.4, 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 5.4% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate NYSE Euronext a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates NYSE Euronext as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and feeble growth in the company's earnings per share.

On the positive front, Consumer Portfolio Services ( CPSS), up 6%, Pzena Investment Management ( PZN), up 3.9%, Noah Holdings ( NOAH), up 3.8%, and SGOCO Group ( SGOC), up 3.5%, were all gainers within the financial services industry with Legg Mason ( LM) 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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