Today's Financial Services Industry Featured Laggard: TD Ameritrade Holding Corporation (AMTD)

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.

TD Ameritrade Holding Corporation ( AMTD) 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, TD Ameritrade Holding Corporation fell 35 cents (-1.7%) to $20 on light volume. Throughout the day, 2.5 million shares of TD Ameritrade Holding Corporation exchanged hands as compared to its average daily volume of 3.4 million shares. The stock ranged in price between $19.89-$20.31 after having opened the day at $20.19 as compared to the previous trading day's close of $20.35. Other companies within the Financial Services industry that declined today were: Siebert Financial Corporation ( SIEB), down 6.7%, Consumer Portfolio Services ( CPSS), down 6%, Credit Acceptance Corporation ( CACC), down 5.7%, and Global X Silver Miners ETF ( SIL), down 4.7%.
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TD Ameritrade Holding Corporation provides securities brokerage services and technology-based financial services to retail investors, traders, and independent registered investment advisors (RIAs) in the United States. TD Ameritrade Holding Corporation has a market cap of $11.05 billion and is part of the financial sector. The company has a P/E ratio of 19, above the S&P 500 P/E ratio of 17.7. Shares are up 21.1% year to date as of the close of trading on Thursday. Currently there are eight analysts that rate TD Ameritrade Holding Corporation a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates TD Ameritrade Holding Corporation as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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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