Goldman Sachs Group Inc (GS): 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.

Goldman Sachs Group ( GS) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day down 2.5%. By the end of trading, Goldman Sachs Group fell $8.27 (-6.5%) to $117.98 on heavy volume. Throughout the day, 6.9 million shares of Goldman Sachs Group exchanged hands as compared to its average daily volume of 4.2 million shares. The stock ranged in price between $117.97-$123.12 after having opened the day at $122.80 as compared to the previous trading day's close of $126.25. Other companies within the Financial Services industry that declined today were: Asset Acceptance Capital Corporation ( AACC), down 13.7%, SWS Group ( SWS), down 10.3%, Ladenburg Thalman Financial Services ( LTS), down 9.9%, and GFI Group ( GFIG), down 9%.
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The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services, as well as a range of financial services to corporations, financial institutions, governments and high-net-worth individuals worldwide. Goldman Sachs Group has a market cap of $59.49 billion and is part of the financial sector. The company has a P/E ratio of 12, below the S&P 500 P/E ratio of 17.7. Shares are up 37.2% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Goldman Sachs Group a buy, two analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Goldman Sachs Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

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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