Charles Schwab Corp (SCHW): Today's Featured Financial Winner

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

Charles Schwab ( SCHW) pushed the Financial sector higher today making it today's featured financial winner. The sector as a whole closed the day up 0.6%. By the end of trading, Charles Schwab rose $0.21 (1.3%) to $16.94 on light volume. Throughout the day, 4,509,157 shares of Charles Schwab exchanged hands as compared to its average daily volume of 9,939,700 shares. The stock ranged in a price between $16.75-$16.98 after having opened the day at $16.76 as compared to the previous trading day's close of $16.73. Other companies within the Financial sector that increased today were: First Security Group ( FSGI), up 20.3%, Carver Bancorp ( CARV), up 15.3%, Cash Store Financial Services ( CSFS), up 12.9% and Security National Financial Corporation ( SNFCA), up 11.6%.
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The Charles Schwab Corporation, through its subsidiaries, provides securities brokerage, banking, money management, and financial advisory services to individuals and institutional clients. The company operates through two segments, Investor Services and Institutional Services. Charles Schwab has a market cap of $21.4 billion and is part of the financial services industry. The company has a P/E ratio of 24.3, above the S&P 500 P/E ratio of 17.7. Shares are up 16.5% year to date as of the close of trading on Friday.

TheStreet Ratings rates Charles Schwab as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, China HGS Real Estate ( HGSH), down 23.6%, National Bank of Greece ( NBG), down 15.7%, Capital ( CT), down 10.8% and Royal Bancshares of Pennsylvania ( RBPAA), down 10.0%.

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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