Charles Schwab Corp (SCHW): 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.

Charles Schwab ( SCHW) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole was unchanged today. By the end of trading, Charles Schwab fell 24 cents (-1.6%) to $15.05 on average volume. Throughout the day, 11.8 million shares of Charles Schwab exchanged hands as compared to its average daily volume of 10.2 million shares. The stock ranged in price between $14.98-$15.25 after having opened the day at $15.15 as compared to the previous trading day's close of $15.29. Other companies within the Financial sector that declined today were: InnSuites Hospitality ( IHT), down 13.4%, Mesabi ( MSB), down 7.6%, Royal Bancshares of Pennsylvania ( RBPAA), down 6.7%, and First Capital Bancorp ( FCVA), down 6.3%.
  • 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.

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 $19.47 billion and is part of the financial services industry. The company has a P/E ratio of 22.8, above the S&P 500 P/E ratio of 17.7. Shares are up 6.3% year to date as of the close of trading on Tuesday. Currently there are five 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 solid stock price performance, 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.

On the positive front, Village Bank and Trust Financial Corporatio ( VBFC), up 15.8%, American Spectrum Realty ( AQQ), up 14.8%, Plumas Bancorp ( PLBC), up 14.6%, and Altisource Residential Corporation ( RESI), up 10.9%, were all gainers within the financial sector with Regions Financial Corporation ( RF) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.