Declines From M&T Bank Corp (MTB) Drive Down Financial Sector

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.

M&T Bank ( MTB) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 0.3%. By the end of trading, M&T Bank fell $4.68 (-4.5%) to $100.24 on heavy volume. Throughout the day, 2.5 million shares of M&T Bank exchanged hands as compared to its average daily volume of 748,200 shares. The stock ranged in price between $99.94-$103.52 after having opened the day at $101.50 as compared to the previous trading day's close of $104.92. Other companies within the Financial sector that declined today were: Homex Development ( HXM), down 10.8%, National Bank of Greece ( NBG), down 10%, Medical Properties ( MPW), down 7.4%, and Siebert Financial Corporation ( SIEB), down 6.7%.
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M&T Bank Corporation operates as the holding company for M&T Bank that provide commercial and retail banking services to individuals, corporations, and other businesses and institutions. M&T Bank has a market cap of $13.45 billion and is part of the banking industry. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are up 6.6% year to date as of the close of trading on Thursday. Currently there are five analysts that rate M&T Bank a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates M&T Bank as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Altis Resident ( RESI), up 30.5%, Kingsway Financial Services ( KFS), up 19.4%, Credit Suisse ( DSLV), up 16.3%, and Pathfinder Bancorp ( PBHC), up 12.9%, were all gainers within the financial sector with Ventas ( VTR) 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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