BB&T Corp (BBT): Today's Featured Financial 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.

BB&T ( BBT) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day up 0.4%. By the end of trading, BB&T fell 58 cents (-1.8%) to $31.81 on heavy volume. Throughout the day, 5.9 million shares of BB&T exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in price between $31.70-$32.58 after having opened the day at $32.49 as compared to the previous trading day's close of $32.39. Other companies within the Financial sector that declined today were: 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%.
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BB&T Corporation operates as a financial holding company for Branch Banking and Trust Company that provides various banking and trust services for retail and commercial clients. BB&T has a market cap of $22.61 billion and is part of the banking industry. The company has a P/E ratio of 13.5, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 28.7% year to date as of the close of trading on Monday. Currently there are nine analysts that rate BB&T a buy, one analyst rates it a sell, and 19 rate it a hold.

TheStreet Ratings rates BB&T as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, 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%, were all gainers within the financial sector with Charles Schwab ( SCHW) being today's featured financial sector leader.

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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