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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 22 points (0.2%) at 12,810 as of Wednesday, Nov. 21, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,635 issues advancing vs. 1,204 declining with 167 unchanged.

The Financial Services industry currently sits down 0.3% versus the S&P 500, which is up 0.0%. On the negative front, top decliners within the industry include Orix Corporation ( IX), down 1.2%, CIT Group ( CIT), down 0.9% and Invesco ( IVZ), down 0.6%. A company within the industry that increased today was Brookfield Asset Management ( BAM), up 0.7%.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. CME Group ( CME) is one of the companies pushing the Financial Services industry lower today. As of noon trading, CME Group is down $0.45 (-0.8%) to $54.15 on light volume Thus far, 371,710 shares of CME Group exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $54.08-$54.75 after having opened the day at $54.71 as compared to the previous trading day's close of $54.60.

CME Group Inc. operates the CME, CBOT, NYMEX and COMEX futures exchanges worldwide. The company provides a range of products across various asset classes, such as interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather, and real estate. CME Group has a market cap of $18.2 billion and is part of the financial sector. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are up 12.0% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate CME Group a buy, 2 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates CME Group as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full CME Group Ratings Report now.

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4. As of noon trading, BlackRock ( BLK) is down $1.39 (-0.7%) to $192.41 on light volume Thus far, 222,752 shares of BlackRock exchanged hands as compared to its average daily volume of 758,300 shares. The stock has ranged in price between $192.07-$194.99 after having opened the day at $194.99 as compared to the previous trading day's close of $193.80.

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. BlackRock has a market cap of $33.4 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 8.7% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate BlackRock a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates BlackRock 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, revenue growth, expanding profit margins and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full BlackRock Ratings Report now.

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3. As of noon trading, Discover Financial Services ( DFS) is down $0.55 (-1.3%) to $40.74 on average volume Thus far, 1.7 million shares of Discover Financial Services exchanged hands as compared to its average daily volume of 4.3 million shares. The stock has ranged in price between $40.62-$41.50 after having opened the day at $41.47 as compared to the previous trading day's close of $41.29.

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 $20.6 billion and is part of the financial sector. The company has a P/E ratio of 9.4, below the S&P 500 P/E ratio of 17.7. Shares are up 70.0% year to date as of the close of trading on Tuesday. 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, growth in earnings per share, expanding profit margins and good cash flow from operations. 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.

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2. As of noon trading, Capital One Financial ( COF) is down $0.47 (-0.8%) to $58.01 on light volume Thus far, 548,144 shares of Capital One Financial exchanged hands as compared to its average daily volume of 4.9 million shares. The stock has ranged in price between $57.98-$58.82 after having opened the day at $58.75 as compared to the previous trading day's close of $58.48.

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 $33.8 billion and is part of the financial sector. The company has a P/E ratio of 9.7, below the S&P 500 P/E ratio of 17.7. Shares are up 38.3% year to date as of the close of trading on Tuesday. 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, good cash flow from operations, solid stock price performance 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 Capital One Financial Ratings Report now.

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1. As of noon trading, Morgan Stanley ( MS) is down $0.12 (-0.7%) to $16.23 on light volume Thus far, 5.9 million shares of Morgan Stanley exchanged hands as compared to its average daily volume of 22.4 million shares. The stock has ranged in price between $16.22-$16.51 after having opened the day at $16.46 as compared to the previous trading day's close of $16.35.

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 $32.6 billion and is part of the financial sector. The company has a P/E ratio of -31.2, below the S&P 500 P/E ratio of 17.7. Shares are up 9.2% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Morgan Stanley a buy, 2 analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Morgan Stanley as a hold. The company's strongest point has been its strong cash flow from operations. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full Morgan Stanley Ratings Report now.

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If you are interested in one of these 3 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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