IntercontinentalExchange Inc. (ICE): Today's Featured Financial Services Winner

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.

IntercontinentalExchange ( ICE) pushed the Financial Services industry higher today making it today's featured financial services winner. The industry as a whole closed the day up 0.5%. By the end of trading, IntercontinentalExchange rose $2.31 (1.5%) to $152.83 on light volume. Throughout the day, 747,862 shares of IntercontinentalExchange exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in a price between $150.61-$153.08 after having opened the day at $152.16 as compared to the previous trading day's close of $150.52. Other companies within the Financial Services industry that increased today were: Millennium India Acquisition Corporation ( SMCG), up 17.6%, Noah Holdings ( NOAH), up 8.8%, Palmetto ( PLMT), up 6.4%, and Security National Financial Corporation ( SNFCA), up 3.9%.
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IntercontinentalExchange, Inc. operates regulated global markets and clearing houses primarily in the United States, the United Kingdom, Canada, and Brazil. IntercontinentalExchange has a market cap of $11.33 billion and is part of the financial sector. The company has a P/E ratio of 20.7, above the S&P 500 P/E ratio of 17.7. Shares are up 26% year to date as of the close of trading on Monday. Currently there are seven analysts that rate IntercontinentalExchange a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates IntercontinentalExchange as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, growth in earnings per share, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Encore Capital Group ( ECPG), down 7.2%, Stifel Financial ( SF), down 6.3%, Gleacher ( GLCH), down 6.2%, and Manhattan Bridge Capital ( LOAN), down 3.2%, were all laggards within the financial services industry with Invesco ( IVZ) being today's financial services industry laggard.

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).

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