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.
Bank of New York Mellon (
BK) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 1.1%. By the end of trading, Bank of New York Mellon fell 38 cents (-1.4%) to $27.86 on light volume. Throughout the day, 4.7 million shares of Bank of New York Mellon exchanged hands as compared to its average daily volume of 6.5 million shares. The stock ranged in price between $27.82-$28.26 after having opened the day at $28.20 as compared to the previous trading day's close of $28.24. Other companies within the Financial sector that declined today were:
Jacksonville Bancorp Inc (FL (
JAXB), down 24.2%,
Village Bank and Trust Financial Corporatio (
VBFC), down 15.3%,
Life Partners Holdings (
LPHI), down 11.1%, and
Forestar Group (
FOR), down 10.3%.
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The Bank of New York Mellon Corporation, a financial services company, provides various products and services worldwide. The company offers a range of equity, fixed income, cash, and alternative/overlay products, as well as distributes investment management products. Bank of New York Mellon has a market cap of $32.71 billion and is part of the financial services industry. The company has a P/E ratio of 13.8, below the S&P 500 P/E ratio of 17.7. Shares are up 8.9% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate Bank of New York Mellon a buy, two analysts rate it a sell, and 11 rate it a hold.
TheStreet Ratings rates Bank of New York Mellon as a
buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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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