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 up 0.4%. By the end of trading, SunTrust Banks fell 67 cents (-2.3%) to $28.12 on average volume. Throughout the day, 7.3 million shares of SunTrust Banks exchanged hands as compared to its average daily volume of 5.3 million shares. The stock ranged in price between $27.98-$28.71 after having opened the day at $28.64 as compared to the previous trading day's close of $28.79. Other companies within the Banking industry that declined today were: Plumas Bancorp ( PLBC), down 10.1%, Old Second Bancorp ( OSBC), down 6.4%, Jefferson ( JFBI), down 5.9%, and Credit Suisse ( UWTI), down 4.9%.
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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 $15.59 billion and is part of the financial sector. The company has a P/E ratio of 8.1, below the S&P 500 P/E ratio of 17.7. Shares are up 2.1% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate SunTrust Banks a buy, four analysts rate it a sell, and 10 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, attractive valuation levels, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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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