State Street Corp (STT): Today's Featured Financial 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.

State Street ( STT) pushed the Financial sector higher today making it today's featured financial winner. The sector as a whole closed the day up 0.6%. By the end of trading, State Street rose 79 cents (1.4%) to $57.10 on light volume. Throughout the day, 2.4 million shares of State Street exchanged hands as compared to its average daily volume of 4.5 million shares. The stock ranged in a price between $56.26-$57.19 after having opened the day at $56.29 as compared to the previous trading day's close of $56.31. Other companies within the Financial sector that increased today were: HMG/Courtland Properties ( HMG), up 139.1%, Altisource Residential Corporation ( RESI), up 36.7%, China HGS Real Estate ( HGSH), up 22.7%, and MBIA ( MBI), up 18.3%.
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State Street Corporation, a financial holding company, provides various financial products and services to institutional investors worldwide. State Street has a market cap of $25.85 billion and is part of the banking industry. The company has a P/E ratio of 13.5, below the S&P 500 P/E ratio of 17.7. Shares are up 20.4% year to date as of the close of trading on Friday. Currently there are 13 analysts that rate State Street a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates State Street 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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