Two Harbors Investment Corp (TWO): 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.

Two Harbors Investment ( TWO) pushed the Financial sector higher today making it today's featured financial winner. The sector as a whole closed the day down 0.2%. By the end of trading, Two Harbors Investment rose 17 cents (1.3%) to $13.42 on average volume. Throughout the day, 5.2 million shares of Two Harbors Investment exchanged hands as compared to its average daily volume of 5.5 million shares. The stock ranged in a price between $13.25-$13.45 after having opened the day at $13.27 as compared to the previous trading day's close of $13.25. Other companies within the Financial sector that increased today were: Altisource Residential Corporation ( RESI), up 35.7%, Elbit Imaging ( EMITF), up 20.2%, Gleacher ( GLCH), up 12.4%, and Hawthorn ( HWBK), up 12.2%.
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Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), residential mortgage loans, residential real properties, and other financial assets. Two Harbors Investment has a market cap of $3.92 billion and is part of the real estate industry. The company has a P/E ratio of 11.1, below the S&P 500 P/E ratio of 17.7. Shares are up 19.6% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Two Harbors Investment a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Two Harbors Investment as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, expanding profit margins, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Howard Bancorp Incorporated Maryland ( HBMD), down 12.5%, Meadowbrook Insurance Group ( MIG), down 10%, Vestin Realty Mortgage I ( VRTA), down 9.1%, and Access National Corporation ( ANCX), down 7.5%, were all laggards within the financial sector with Wells Fargo ( WFC) being today's financial sector laggard.

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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