Blackstone Group LP (BX): 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.

Blackstone Group ( BX) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Blackstone Group fell 29 cents (-1.9%) to $14.97 on heavy volume. Throughout the day, 3.8 million shares of Blackstone Group exchanged hands as compared to its average daily volume of 2.5 million shares. The stock ranged in price between $14.89-$15.40 after having opened the day at $15.40 as compared to the previous trading day's close of $15.26. Other companies within the Financial Services industry that declined today were: Heckmann ( HEK), down 9.1%, SGOCO Group ( SGOC), down 5.3%, Investors Capital Holdings ( ICH), down 5.1%, and Noah Holdings ( NOAH), down 4.5%.
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The Blackstone Group L.P., together with its subsidiaries, provides alternative asset management and financial advisory services worldwide. It operates in five segments: Private Equity, Real Estate, Hedge Fund Solutions, Credit Businesses, and Financial Advisory. Blackstone Group has a market cap of $8.2 billion and is part of the financial sector. Shares are up 8.9% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Blackstone Group a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Blackstone Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

On the positive front, Millennium India Acquisition Corporation ( SMCG), up 11.1%, Walter Investment Management ( WAC), up 6.5%, PHH Corporation ( PHH), up 6.1%, and Security National Financial Corporation ( SNFCA), up 4.4%, were all gainers within the financial services industry with SLM ( SLM) 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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