Federated Investors Inc. (FII): Today's Featured Financial Services 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.

Federated Investors ( FII) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Federated Investors fell 25 cents (-1.1%) to $22.97 on heavy volume. Throughout the day, 2.7 million shares of Federated Investors exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in price between $22.82-$23.16 after having opened the day at $23.13 as compared to the previous trading day's close of $23.22. Other companies within the Financial Services industry that declined today were: Investors Capital Holdings ( ICH), down 4.4%, Cowen Group ( COWN), down 4.2%, JMP Group ( JMP), down 4.2%, and Resource America Inc. CL A ( REXI), down 2.7%.
  • 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.

Federated Investors, Inc. is a publicly owned asset management holding company. Federated Investors has a market cap of $2.42 billion and is part of the financial sector. The company has a P/E ratio of 13, below the S&P 500 P/E ratio of 17.7. Shares are up 14.8% year to date as of the close of trading on Thursday. Currently there are no analysts that rate Federated Investors a buy, five analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Federated Investors as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Siebert Financial Corporation ( SIEB), up 12.1%, Nomura Holdings ( NMR), up 4.7%, SLM ( SLM), up 4.2%, and Orix Corporation ( IX), up 3.4%, were all gainers within the financial services industry with Discover Financial Services ( DFS) being today's featured financial services industry leader.

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).

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.

null

More from Markets

Dow Rises for First Time in 9 Days, Oil Soars as OPEC Agrees to Boost Output

Dow Rises for First Time in 9 Days, Oil Soars as OPEC Agrees to Boost Output

Amazon's Big Weakness in the Supreme Court Sales Tax Ruling

Amazon's Big Weakness in the Supreme Court Sales Tax Ruling

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Tesla's Automotive Gross Margins May Be Overstated, Analysts Suggest

Tesla's Automotive Gross Margins May Be Overstated, Analysts Suggest

OPEC Deal Doesn't Boost Production Enough to Drive Down Crude, Gasoline Prices

OPEC Deal Doesn't Boost Production Enough to Drive Down Crude, Gasoline Prices