Bank Of America Corporation (BAC): Today's Featured Banking 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.

Bank of America Corporation ( BAC) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day down 0.2%. By the end of trading, Bank of America Corporation fell 14 cents (-1.1%) to $12.01 on average volume. Throughout the day, 127.3 million shares of Bank of America Corporation exchanged hands as compared to its average daily volume of 165.3 million shares. The stock ranged in price between $11.91-$12.18 after having opened the day at $12.11 as compared to the previous trading day's close of $12.15. Other companies within the Banking industry that declined today were: Howard Bancorp Incorporated Maryland ( HBMD), down 12.5%, Access National Corporation ( ANCX), down 7.5%, Rurban Financial ( RBNF), down 6.9%, and EverBank Financial ( EVER), down 6.8%.
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Bank of America Corporation, through its subsidiaries, provides various banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, corporations, and governments in the United States and internationally. Bank of America Corporation has a market cap of $130.6 billion and is part of the financial sector. The company has a P/E ratio of 48.3, above the S&P 500 P/E ratio of 17.7. Shares are up 4.7% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Bank of America Corporation a buy, one analyst rates it a sell, and 15 rate it a hold.

TheStreet Ratings rates Bank of America Corporation as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the banking industry could consider KBW Bank ETF ( KBE) while those bearish on the banking industry could consider ProShares Short KBW Regional Bankng ( KRS).

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