State Street Corp (STT): Today's Featured Banking Winner

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 higher today making it today's featured banking winner. The industry as a whole was unchanged today. By the end of trading, State Street rose $1.95 (4.7%) to $43.53 on heavy volume. Throughout the day, 7.7 million shares of State Street exchanged hands as compared to its average daily volume of 3.9 million shares. The stock ranged in a price between $41.37-$43.81 after having opened the day at $42.08 as compared to the previous trading day's close of $41.58. Other companies within the Banking industry that increased today were: Plumas Bancorp ( PLBC), up 13.3%, Southcoast Financial Corporation ( SOCB), up 11.8%, First South Bancorp ( FSBK), up 11.3%, and MBT Financial Corporation ( MBTF), up 11.1%.
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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 $19.83 billion and is part of the financial sector. The company has a P/E ratio of 11.2, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 3.2% 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 solid stock price performance, attractive valuation levels, expanding profit margins, good cash flow from operations 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.

On the negative front, Anchor Bancorp ( ANCB), down 10%, Jacksonville Bancorp Inc (FL ( JAXB), down 7.4%, Village Bank and Trust Financial Corporatio ( VBFC), down 6.7%, and Colony Bankcorp ( CBAN), down 6.6%, were all laggards within the banking industry with Fifth Third Bancorp ( FITB) being today's banking industry laggard.

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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