E*Trade Financial Corp (ETFC): 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.

E*Trade Financial ( ETFC) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day up 0.4%. By the end of trading, E*Trade Financial fell 12 cents (-1.4%) to $8.65 on average volume. Throughout the day, 3.5 million shares of E*Trade Financial exchanged hands as compared to its average daily volume of 4.6 million shares. The stock ranged in price between $8.60-$8.83 after having opened the day at $8.82 as compared to the previous trading day's close of $8.77. Other companies within the Financial Services industry that declined today were: Millennium India Acquisition Corporation ( SMCG), down 21%, Credit Suisse ( DSLV), down 8.4%, NYSE Euronext ( NYX), down 5.2%, and Walter Investment Management ( WAC), down 4.1%.
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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 36.5, above the S&P 500 P/E ratio of 17.7. Shares are up 5.5% year to date as of the close of trading on Monday. Currently there is one analyst that rates E*Trade Financial a buy, one analyst rates it a sell, and eight 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.

On the positive front, FirstCity Financial Corporation ( FCFC), up 6.1%, FBR ( FBRC), up 5.6%, MicroFinancial ( MFI), up 5%, and Credit Acceptance Corporation ( CACC), up 4.9%, were all gainers within the financial services industry with BlackRock ( BLK) 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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