Charles Schwab Corp (SCHW): Today's Featured Financial Services Winner

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.

Charles Schwab ( SCHW) pushed the Financial Services industry higher today making it today's featured financial services winner. The industry as a whole closed the day down 0.1%. By the end of trading, Charles Schwab rose 13 cents (1%) to $13.06 on light volume. Throughout the day, 5.7 million shares of Charles Schwab exchanged hands as compared to its average daily volume of 11.2 million shares. The stock ranged in a price between $12.88-$13.07 after having opened the day at $13 as compared to the previous trading day's close of $12.93. Other companies within the Financial Services industry that increased today were: Epoch Holding Corporation ( EPHC), up 26.4%, Palmetto ( PLMT), up 6.7%, First Marblehead Corporation ( FMD), up 3.9%, and Ampal-American Israel Corporation ( AMPL), up 3.3%.
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The Charles Schwab Corporation, through its subsidiaries, provides securities brokerage, banking, and related financial services to individuals and institutional clients. Charles Schwab has a market cap of $16.42 billion and is part of the financial sector. The company has a P/E ratio of 19.2, above the S&P 500 P/E ratio of 17.7. Shares are up 14.8% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate Charles Schwab a buy, two analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Charles Schwab as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, revenue growth and good cash flow from operations. 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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