State Street Corp (STT): 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.

State Street ( STT) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 0.7%. By the end of trading, State Street fell 79 cents (-1.8%) to $43.92 on average volume. Throughout the day, 3.3 million shares of State Street exchanged hands as compared to its average daily volume of 3.9 million shares. The stock ranged in price between $43.74-$44.18 after having opened the day at $44 as compared to the previous trading day's close of $44.71. Other companies within the Financial sector that declined today were: Millennium India Acquisition Corporation ( SMCG), down 30.8%, Jacksonville Bancorp Inc (FL ( JAXB), down 15.9%, Vestin Realty Mortgage I ( VRTA), down 10.8%, and Atlantic Coast Financial ( ACFC), down 8.8%.
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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 $21.4 billion and is part of the banking industry. The company has a P/E ratio of 12.1, above the average banking industry P/E ratio of 11.3 and below the S&P 500 P/E ratio of 17.7. Shares are up 10.8% year to date as of the close of trading on Monday. Currently there are 15 analysts that rate State Street a buy, three 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, impressive record of earnings per share growth, attractive valuation levels, expanding profit margins 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 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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