5 Stocks Pushing The Financial Services Industry Lower

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 5 stocks pushing the industry lower today:

5. Franklin Resources ( BEN) is one of the companies pushing the Financial Services industry lower today. As of noon trading, Franklin Resources is down $1.68 (-1.3%) to $130.27 on light volume Thus far, 306,832 shares of Franklin Resources exchanged hands as compared to its average daily volume of 595,600 shares. The stock has ranged in price between $129.94-$132.08 after having opened the day at $131.51 as compared to the previous trading day's close of $131.95.

Franklin Resources Inc. is a publicly owned asset management holding company. The firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It manages, through its subsidiary, separate client-focused equity, fixed income, and balanced portfolios. Franklin Resources has a market cap of $28.2 billion and is part of the financial sector. The company has a P/E ratio of 14.8, below the S&P 500 P/E ratio of 17.7. Shares are up 38.0% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Franklin Resources a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Franklin Resources as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, notable return on equity and increase in net income. 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 Franklin Resources Ratings Report now.

4. As of noon trading, Discover Financial Services ( DFS) is down $0.70 (-1.7%) to $40.28 on light volume Thus far, 2.8 million shares of Discover Financial Services exchanged hands as compared to its average daily volume of 3.9 million shares. The stock has ranged in price between $39.96-$40.91 after having opened the day at $40.71 as compared to the previous trading day's close of $40.98.

Discover Financial Services, a bank holding company, offers direct banking and payment services in the United States. It operates in two segments, Direct Banking and Payment Services. Discover Financial Services has a market cap of $20.9 billion and is part of the financial sector. The company has a P/E ratio of 9.5, below the S&P 500 P/E ratio of 17.7. Shares are up 72.2% year to date as of the close of trading on Friday. Currently there are 13 analysts that rate Discover Financial Services a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Discover Financial Services as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Discover Financial Services Ratings Report now.

3. As of noon trading, American Express ( AXP) is down $0.62 (-1.1%) to $56.09 on light volume Thus far, 2.0 million shares of American Express exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $55.85-$56.46 after having opened the day at $56.20 as compared to the previous trading day's close of $56.71.

American Express Company provides charge and credit payment card products and travel-related services to customers worldwide. American Express has a market cap of $63.6 billion and is part of the financial sector. The company has a P/E ratio of 13.2, below the S&P 500 P/E ratio of 17.7. Shares are up 20.2% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate American Express a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates American Express as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full American Express Ratings Report now.

2. As of noon trading, Capital One Financial ( COF) is down $1.06 (-1.7%) to $60.34 on light volume Thus far, 1.5 million shares of Capital One Financial exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $60.33-$61.39 after having opened the day at $61.18 as compared to the previous trading day's close of $61.40.

Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association (COBNA), and Capital One, National Association (CONA), which provide various financial products and services in the United States, the United Kingdom, and Canada. Capital One Financial has a market cap of $35.7 billion and is part of the financial sector. The company has a P/E ratio of 10.3, below the S&P 500 P/E ratio of 17.7. Shares are up 45.2% year to date as of the close of trading on Friday. Currently there are 18 analysts that rate Capital One Financial a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Capital One Financial as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Capital One Financial Ratings Report now.

1. As of noon trading, Morgan Stanley ( MS) is down $0.24 (-1.4%) to $17.54 on light volume Thus far, 9.4 million shares of Morgan Stanley exchanged hands as compared to its average daily volume of 21.3 million shares. The stock has ranged in price between $17.41-$17.66 after having opened the day at $17.65 as compared to the previous trading day's close of $17.78.

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. Morgan Stanley has a market cap of $34.8 billion and is part of the financial sector. The company has a P/E ratio of -33.2, below the S&P 500 P/E ratio of 17.7. Shares are up 16.4% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Morgan Stanley a buy, 2 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Morgan Stanley as a hold. The company's strongest point has been its very decent return on equity which we feel should persist. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share and deteriorating net income. Get the full Morgan Stanley 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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