SunTrust Banks Inc (STI): Today's Featured Banking 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.

SunTrust Banks ( STI) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day down 0.1%. By the end of trading, SunTrust Banks fell 57 cents (-2%) to $27.20 on average volume. Throughout the day, 4.8 million shares of SunTrust Banks exchanged hands as compared to its average daily volume of 6.1 million shares. The stock ranged in price between $27.04-$27.84 after having opened the day at $27.69 as compared to the previous trading day's close of $27.77. Other companies within the Banking industry that declined today were: Jacksonville Bancorp Inc (FL ( JAXB), down 9.4%, Chemung Financial Corporation ( CHMG), down 7.9%, Central Federal ( CFBK), down 6.3%, and Boston Private Financial Holdings ( BPFH), down 5.9%.
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SunTrust Banks, Inc. operates as the holding company for SunTrust Bank, which provides various financial services in the United States. SunTrust Banks has a market cap of $14.87 billion and is part of the financial sector. The company has a P/E ratio of nine, below the S&P 500 P/E ratio of 17.7. Shares are up 55.9% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate SunTrust Banks a buy, four analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates SunTrust Banks as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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