Bank Of America Corporation (BAC): 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.

Bank of America Corporation ( BAC) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 2.2%. By the end of trading, Bank of America Corporation fell 71 cents (-7.1%) to $9.23 on heavy volume. Throughout the day, 279.7 million shares of Bank of America Corporation exchanged hands as compared to its average daily volume of 142.3 million shares. The stock ranged in price between $9.22-$9.67 after having opened the day at $9.63 as compared to the previous trading day's close of $9.94. Other companies within the Financial sector that declined today were: Doral Financial ( DRL), down 14.1%, Asset Acceptance Capital Corporation ( AACC), down 13.7%, Village Bank and Trust Financial Corporatio ( VBFC), down 13%, and Credit Suisse ( UWTI), down 12.1%.
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Bank of America Corporation, through its subsidiaries, provides various banking and financial products and services to individual consumers, small-and middle-market businesses, institutional investors, corporations, and governments in the United States and internationally. Bank of America Corporation has a market cap of $105.08 billion and is part of the banking industry. The company has a P/E ratio of 14.1, below the S&P 500 P/E ratio of 17.7. Shares are up 75.4% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Bank of America Corporation a buy, two analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates Bank of America Corporation as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, notable return on equity and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk.

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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