NYSE Euronext Inc. (NYX): Today's Featured Financial Services 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.

NYSE Euronext ( NYX) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day down 0.5%. By the end of trading, NYSE Euronext fell 26 cents (-1.1%) to $23.18 on heavy volume. Throughout the day, 4.6 million shares of NYSE Euronext exchanged hands as compared to its average daily volume of 2.5 million shares. The stock ranged in price between $23.01-$23.57 after having opened the day at $23.38 as compared to the previous trading day's close of $23.44. Other companies within the Financial Services industry that declined today were: Paulson Capital ( PLCC), down 20%, Ampal-American Israel Corporation ( AMPL), down 11%, US Global Investors ( GROW), down 7.9%, and GAIN Capital Holdings ( GCAP), down 7.6%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

NYSE Euronext, through its subsidiaries, operates securities exchanges. It operates various stock exchanges, including the New York Stock Exchange (NYSE), NYSE Arca, Inc., and NYSE Amex LLC in the United States; and five European-based exchanges that comprise Euronext N.V. NYSE Euronext has a market cap of $5.68 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 down 10.5% year to date as of the close of trading on Wednesday. Currently there are eight analysts that rate NYSE Euronext a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates NYSE Euronext as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

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).

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.

null

More from Markets

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk