Charles Schwab Corp (SCHW): 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.

Charles Schwab ( SCHW) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Charles Schwab fell 29 cents (-1.6%) to $17.46 on average volume. Throughout the day, 8.7 million shares of Charles Schwab exchanged hands as compared to its average daily volume of 10.3 million shares. The stock ranged in price between $17.42-$17.78 after having opened the day at $17.65 as compared to the previous trading day's close of $17.75. Other companies within the Financial Services industry that declined today were: Piper Jaffray Cos ( PJC), down 5.8%, Pzena Investment Management ( PZN), down 4.6%, Fortress Investment Group ( FIG), down 4.5%, and Raymond James Financial ( RJF), down 4.4%.
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The Charles Schwab Corporation, through its subsidiaries, provides securities brokerage, banking, money management, and financial advisory services to individuals and institutional clients. The company operates through two segments, Investor Services and Institutional Services. Charles Schwab has a market cap of $22.57 billion and is part of the financial sector. The company has a P/E ratio of 25.6, above the S&P 500 P/E ratio of 17.7. Shares are up 22.2% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Charles Schwab a buy, two analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Charles Schwab as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, growth in earnings per share and increase in net income. 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 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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