State Street Corp (STT): 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.

State Street ( STT) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day up 0.2%. By the end of trading, State Street fell 88 cents (-1.9%) to $44.90 on average volume. Throughout the day, 3.5 million shares of State Street exchanged hands as compared to its average daily volume of 4.1 million shares. The stock ranged in price between $44.66-$45.40 after having opened the day at $45.38 as compared to the previous trading day's close of $45.78. Other companies within the Financial sector that declined today were: Porter Bancorp ( PBIB), down 12.3%, China Ceramics ( CCCL), down 10.4%, Carolina Trust Bank ( CART), down 10%, and SGOCO Group ( SGOC), down 9.3%.
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State Street Corporation, a financial holding company, provides various financial products and services to institutional investors worldwide. State Street has a market cap of $21.1 billion and is part of the banking industry. The company has a P/E ratio of 11.5, below the S&P 500 P/E ratio of 17.7. Shares are up 12.6% year to date as of the close of trading on Friday. Currently there are 15 analysts that rate State Street a buy, three analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates State Street as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, attractive valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Impac Mortgage Holdings ( IMH), up 15.3%, Southern Connecticut Bancorp ( SSE), up 13.6%, Knight Capital Group ( KCG), up 13.3%, and Elbit Imaging ( EMITF), up 12%, were all gainers within the financial sector with Comerica ( CMA) being today's featured financial sector leader.

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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