Regions Financial Corporation (RF): 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.

Regions Financial Corporation ( RF) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Regions Financial Corporation fell 9 cents (-1.4%) to $6.58 on light volume. Throughout the day, 11.2 million shares of Regions Financial Corporation exchanged hands as compared to its average daily volume of 20.5 million shares. The stock ranged in price between $6.56-$6.73 after having opened the day at $6.69 as compared to the previous trading day's close of $6.67. Other companies within the Financial sector that declined today were: Oak Ridge Financial Services ( BKOR), down 13.5%, BNC Bancorp ( BNCN), down 7.9%, Hampton Roads Bankshares ( HMPR), down 7.6%, and Federated National ( FNHC), down 7.6%.
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Regions Financial Corporation operates as the holding company for Regions Bank that provides a range of commercial, retail, and mortgage banking services in the United States. Regions Financial Corporation has a market cap of $9.42 billion and is part of the banking industry. The company has a P/E ratio of 14.5, below the S&P 500 P/E ratio of 17.7. Shares are up 55.1% year to date as of the close of trading on Friday. Currently there are eight analysts that rate Regions Financial Corporation a buy, two analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Regions Financial Corporation as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income and attractive valuation levels. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

On the positive front, First Financial Service Corporation ( FFKY), up 16.1%, Carolina Trust Bank ( CART), up 15.6%, Village Bank and Trust Financial Corporatio ( VBFC), up 13.6%, and Old Second Bancorp ( OSBC), up 11.9%, were all gainers within the financial sector with Digital Realty ( DLR) 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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