3 Stocks Pulling The Financial Services Industry Downward

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 36 points (0.3%) at 14,562 as of Thursday, March 28, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,626 issues advancing vs. 1,256 declining with 162 unchanged.

The Financial Services industry currently sits up 0.1% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Orix Corporation ( IX), down 1.4%, and Nomura Holdings ( NMR), down 1.3%. Top gainers within the industry include Western Union Company ( WU), up 0.8%, Affiliated Managers Group ( AMG), up 0.7% and TD Ameritrade Holding Corporation ( AMTD), up 0.5%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Northern Trust Corporation ( NTRS) is one of the companies pushing the Financial Services industry lower today. As of noon trading, Northern Trust Corporation is down $0.34 (-0.6%) to $54.31 on light volume Thus far, 229,090 shares of Northern Trust Corporation exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $54.24-$54.64 after having opened the day at $54.64 as compared to the previous trading day's close of $54.65.

Northern Trust Corporation, through its subsidiaries, provides asset servicing, fund administration, asset management, fiduciary, and banking solutions worldwide. Northern Trust Corporation has a market cap of $13.1 billion and is part of the financial sector. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 9.0% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Northern Trust Corporation a buy, 2 analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Northern Trust Corporation as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, expanding profit margins, solid stock price performance, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Northern Trust Corporation Ratings Report now.

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2. As of noon trading, Blackstone Group ( BX) is down $0.31 (-1.5%) to $19.74 on light volume Thus far, 1.3 million shares of Blackstone Group exchanged hands as compared to its average daily volume of 5.6 million shares. The stock has ranged in price between $19.74-$20.19 after having opened the day at $20.15 as compared to the previous trading day's close of $20.05.

The Blackstone Group L.P., together with its subsidiaries, provides alternative asset management and financial advisory services worldwide. It operates in five segments: Private Equity, Real Estate, Hedge Fund Solutions, Credit Businesses, and Financial Advisory. Blackstone Group has a market cap of $11.1 billion and is part of the financial sector. The company has a P/E ratio of 48.8, above the S&P 500 P/E ratio of 17.7. Shares are up 28.6% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate Blackstone Group a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Blackstone Group as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Blackstone Group Ratings Report now.

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1. As of noon trading, Morgan Stanley ( MS) is down $0.21 (-0.9%) to $22.08 on light volume Thus far, 6.8 million shares of Morgan Stanley exchanged hands as compared to its average daily volume of 21.9 million shares. The stock has ranged in price between $22.06-$22.40 after having opened the day at $22.35 as compared to the previous trading day's close of $22.29.

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. Morgan Stanley has a market cap of $43.6 billion and is part of the financial sector. The company has a P/E ratio of 1111.0, above the S&P 500 P/E ratio of 17.7. Shares are up 16.6% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Morgan Stanley a buy, 2 analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Morgan Stanley as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow. Get the full Morgan Stanley Ratings Report now.

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If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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