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 Banking industry higher today making it today's featured banking winner. The industry as a whole closed the day up 0.2%. By the end of trading, Bank of America Corporation rose 14 cents (1.4%) to $9.77 on average volume. Throughout the day, 131.5 million shares of Bank of America Corporation exchanged hands as compared to its average daily volume of 152 million shares. The stock ranged in a price between $9.63-$9.78 after having opened the day at $9.68 as compared to the previous trading day's close of $9.63. Other companies within the Banking industry that increased today were:
Central Federal (
CFBK), up 12.1%,
Harleysville Savings Financial Corporation (
HARL), up 9.4%,
Citizens Holding Company (
CIZN), up 8.4%, and
Credit Suisse (
UOIL), up 8.4%.
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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 $102.28 billion and is part of the financial sector. The company has a P/E ratio of 13.8, below the S&P 500 P/E ratio of 17.7. Shares are up 70.7% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Bank of America Corporation a buy, two analysts rate it a sell, and 14 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 good cash flow from operations, expanding profit margins and notable return on equity. 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 banking industry could consider
KBW Bank ETF (
KBE) while those bearish on the banking industry could consider
ProShares Short KBW Regional Bankng (
KRS).
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