Waddell & Reed Financial Inc. (WDR): Today's Highlighted Laggard In Financial Services

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.

Waddell & Reed Financial ( WDR) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day up 1.2%. By the end of trading, Waddell & Reed Financial fell $1.01 (-2.5%) to $40.29 on heavy volume. Throughout the day, 2.5 million shares of Waddell & Reed Financial exchanged hands as compared to its average daily volume of 848,100 shares. The stock ranged in price between $40.15-$42.67 after having opened the day at $41.66 as compared to the previous trading day's close of $41.30. Other companies within the Financial Services industry that declined today were: WisdomTree Global Real Return Fund ( RRF), down 3.5% and Goldman Sachs Group ( GS), down 1.6%.
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Waddell & Reed Financial, Inc., through its subsidiaries, provides investment management, investment product underwriting and distribution, and shareholder services administration to mutual funds, and institutional and separately managed accounts in the United States. Waddell & Reed Financial has a market cap of $3.77 billion and is part of the financial sector. The company has a P/E ratio of 19.6, above the S&P 500 P/E ratio of 17.7. Shares are up 18.6% year to date as of the close of trading on Monday. Currently there are four analysts that rate Waddell & Reed Financial a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Waddell & Reed Financial as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Consumer Portfolio Services ( CPSS), up 7.1%, Paulson Capital ( PLCC), up 6.7%, Och-Ziff Capital Management Group ( OZM), up 6.1%, and Apollo Global Management ( APO), up 6%, were all gainers within the financial services industry with Discover Financial Services ( DFS) being today's featured financial services industry leader.

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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