4 Stocks Pushing The Financial Services Industry Higher

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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 10 points (-0.1%) at 13,082 as of Monday, Nov. 5, 2012, 1:34 PM ET. The NYSE advances/declines ratio sits at 1,351 issues advancing vs. 1,574 declining with 129 unchanged.

The Financial Services industry currently sits down 0.2% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the industry include Walter Investment Management ( WAC), down 9.2%, CIT Group ( CIT), down 1.4%, Blackstone Group ( BX), down 1.0%, Brookfield Asset Management ( BAM), down 0.8% and Nomura Holdings ( NMR), down 0.8%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry higher today:

4. E*Trade Financial ( ETFC) is one of the companies pushing the Financial Services industry higher today. As of noon trading, E*Trade Financial is up $0.37 (4.4%) to $8.77 on average volume Thus far, 3.7 million shares of E*Trade Financial exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $8.65-$8.89 after having opened the day at $8.70 as compared to the previous trading day's close of $8.40.

E*TRADE Financial Corporation, a financial services company, provides online brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand in the United States. E*Trade Financial has a market cap of $2.4 billion and is part of the financial sector. The company has a P/E ratio of 36.9, above the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Friday. Currently there is 1 analyst that rates E*Trade Financial a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates E*Trade Financial as a hold. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Get the full E*Trade Financial Ratings Report now.

3. As of noon trading, IntercontinentalExchange ( ICE) is up $3.23 (2.5%) to $133.06 on light volume Thus far, 243,246 shares of IntercontinentalExchange exchanged hands as compared to its average daily volume of 458,300 shares. The stock has ranged in price between $128.64-$133.74 after having opened the day at $129.15 as compared to the previous trading day's close of $129.83.

IntercontinentalExchange, Inc. operates regulated exchanges, clearing houses, and over-the-counter (OTC) markets for agricultural, credit, currency, emissions, energy, and equity index contracts. IntercontinentalExchange has a market cap of $9.5 billion and is part of the financial sector. The company has a P/E ratio of 17.1, below the S&P 500 P/E ratio of 17.7. Shares are up 8.9% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate IntercontinentalExchange a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates IntercontinentalExchange 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, notable return on equity and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full IntercontinentalExchange Ratings Report now.

2. As of noon trading, Charles Schwab ( SCHW) is up $0.18 (1.3%) to $13.92 on average volume Thus far, 8.4 million shares of Charles Schwab exchanged hands as compared to its average daily volume of 9.5 million shares. The stock has ranged in price between $13.64-$14.00 after having opened the day at $13.72 as compared to the previous trading day's close of $13.74.

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 $17.4 billion and is part of the financial sector. The company has a P/E ratio of 20.4, above the S&P 500 P/E ratio of 17.7. Shares are up 22.0% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Charles Schwab a buy, 2 analysts rate it a sell, and 9 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, increase in stock price during the past year and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing. Get the full Charles Schwab Ratings Report now.

1. As of noon trading, Bank of New York Mellon ( BK) is up $0.36 (1.4%) to $24.88 on light volume Thus far, 3.7 million shares of Bank of New York Mellon exchanged hands as compared to its average daily volume of 6.2 million shares. The stock has ranged in price between $24.57-$24.95 after having opened the day at $24.66 as compared to the previous trading day's close of $24.53.

The Bank of New York Mellon Corporation, a financial services company, provides various products and services worldwide. The company offers a range of equity, fixed income, cash, and alternative/overlay products, as well as distributes investment management products. Bank of New York Mellon has a market cap of $29.7 billion and is part of the financial sector. The company has a P/E ratio of 13.0, below the S&P 500 P/E ratio of 17.7. Shares are up 26.1% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Bank of New York Mellon a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Bank of New York Mellon 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, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Bank of New York Mellon Ratings Report now.

If you are interested in one of these 4 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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