Charles Schwab Corp (SCHW): Today's Featured Financial 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.

Charles Schwab ( SCHW) pushed the Financial sector higher today making it today's featured financial winner. The sector as a whole closed the day up 0.4%. By the end of trading, Charles Schwab rose 29 cents (2.2%) to $13.32 on average volume. Throughout the day, 10.5 million shares of Charles Schwab exchanged hands as compared to its average daily volume of 9.4 million shares. The stock ranged in a price between $12.97-$13.34 after having opened the day at $13.04 as compared to the previous trading day's close of $13.03. Other companies within the Financial sector that increased today were: Optibase ( OBAS), up 26.2%, Millennium India Acquisition Corporation ( SMCG), up 19.4%, Consumer Portfolio Services ( CPSS), up 13.6%, and American Realty Investors ( ARL), up 13.3%.
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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 $16.5 billion and is part of the financial services industry. The company has a P/E ratio of 19.6, 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 15.7% year to date as of the close of trading on Monday. 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 negative front, Kingsway Financial Services ( KFS), down 17.6%, Anchor Bancorp ( ANCB), down 10%, SGOCO Group ( SGOC), down 9.2%, and Jacksonville Bancorp Inc (FL ( JAXB), down 7.4%, were all laggards within the financial sector with BB&T ( BBT) being today's financial sector laggard.

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

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