KKR & Co LP (KKR): Financial Services' Highlighted Dud Of The Day

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.

KKR ( KKR) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day down 0.4%. By the end of trading, KKR fell 31 cents (-1.7%) to $18.31 on average volume. Throughout the day, 2.5 million shares of KKR exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $18.18-$18.90 after having opened the day at $18.75 as compared to the previous trading day's close of $18.62. Other companies within the Financial Services industry that declined today were: Security National Financial Corporation ( SNFCA), down 6.7%, Manhattan Bridge Capital ( LOAN), down 6%, Tile Shop Holdings ( TTS), down 3.8%, and Consumer Portfolio Services ( CPSS), down 3.7%.
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Kohlberg Kravis Roberts & Co. is a private equity investment firm specializing in acquisitions, leveraged buyouts, management buyouts, special situations, growth equity, mature, and middle market investments. KKR has a market cap of $5.03 billion and is part of the financial sector. The company has a P/E ratio of 8.7, below the S&P 500 P/E ratio of 17.7. Shares are up 24.4% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate KKR a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates KKR as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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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