Aflac Inc (AFL): 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.

Aflac ( AFL) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 0.1%. By the end of trading, Aflac fell $1 (-1.9%) to $50.18 on heavy volume. Throughout the day, 4.8 million shares of Aflac exchanged hands as compared to its average daily volume of 2.9 million shares. The stock ranged in price between $49.92-$51.24 after having opened the day at $51.20 as compared to the previous trading day's close of $51.18. Other companies within the Financial sector that declined today were: Credit Suisse ( DOIL), down 16%, Elbit Imaging ( EMITF), down 11.2%, Global Cash Access Holdings ( GCA), down 7.4%, and Cash Store Financial Services ( CSFS), down 7%.
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Aflac Incorporated, through its subsidiary, American Family Life Assurance Company of Columbus, provides supplemental health and life insurance. Aflac has a market cap of $25.08 billion and is part of the insurance industry. Shares are up 0.7% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate Aflac a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Aflac as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

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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