Financial Sector's Featured Straggler Of The Day: MBIA Inc (MBI)

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.

MBIA ( MBI) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day up 0.3%. By the end of trading, MBIA fell 11 cents (-1.1%) to $10.27 on average volume. Throughout the day, 3.9 million shares of MBIA exchanged hands as compared to its average daily volume of four million shares. The stock ranged in price between $10.14-$10.41 after having opened the day at $10.40 as compared to the previous trading day's close of $10.38. Other companies within the Financial sector that declined today were: Carver Bancorp ( CARV), down 7.3%, NASB Financial ( NASB), down 6.7%, Crescent Financial ( CRFN), down 6.4%, and Pzena Investment Management ( PZN), down 6.3%.
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MBIA Inc., together with its subsidiaries, provides financial guarantee insurance and related reinsurance, advisory, and portfolio services for the public and structured finance markets; and asset management advisory services in the United States and internationally. MBIA has a market cap of $2.05 billion and is part of the insurance industry. The company has a P/E ratio of 1.7, below the S&P 500 P/E ratio of 17.7. Shares are up 32.2% year to date as of the close of trading on Wednesday. Currently there are no analysts that rate MBIA a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates MBIA as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

On the positive front, Altisource Residential Corporation ( RESI), up 33.3%, First Internet Bancorp ( FIBP), up 10.8%, River Valley Bancorp ( RIVR), up 10.7%, and Palmetto ( PLMT), up 9.8%, were all gainers within the financial sector with Charles Schwab ( SCHW) being today's featured financial sector leader.

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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