3 Stocks Improving Performance Of The Financial Services Industry

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 62 points (-0.4%) at 14,778 as of Wednesday, May 1, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 958 issues advancing vs. 1,966 declining with 114 unchanged.

The Financial Services industry currently sits down 0.65 versus the S&P 500, which is down 0.42. A company within the industry that increased today was Western Union Company ( WU), up 5.20. On the negative front, top decliners within the industry include Nomura Holdings ( NMR), down 2.81, MasterCard Incorporated ( MA), down 2.56, Bank of New York Mellon ( BK), down 1.35 and Orix Corporation ( IX), down 0.59.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry higher today:

3. NYSE Euronext ( NYX) is one of the companies pushing the Financial Services industry higher today. As of noon trading, NYSE Euronext is up $1.22 (3.16) to $40.04 on heavy volume Thus far, 1.7 million shares of NYSE Euronext exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $38.34-$40.11 after having opened the day at $38.67 as compared to the previous trading day's close of $38.81.

NYSE Euronext, through its subsidiaries, operates securities exchanges. It operates various stock exchanges, including the New York Stock Exchange (NYSE), NYSE Arca, Inc., and NYSE MKT LLC in the United States; and European based exchanges comprising Euronext N.V. NYSE Euronext has a market cap of $9.4 billion and is part of the financial sector. The company has a P/E ratio of 27.8, above the S&P 500 P/E ratio of 17.7. Shares are up 23.1% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate NYSE Euronext a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates NYSE Euronext as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full NYSE Euronext Ratings Report now.

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2. As of noon trading, IntercontinentalExchange ( ICE) is up $7.20 (4.42) to $170.13 on heavy volume Thus far, 1.0 million shares of IntercontinentalExchange exchanged hands as compared to its average daily volume of 803,700 shares. The stock has ranged in price between $158.45-$170.73 after having opened the day at $159.50 as compared to the previous trading day's close of $162.93.

IntercontinentalExchange, Inc. operates regulated global markets and clearing houses primarily in the United States, the United Kingdom, Canada, and Brazil. IntercontinentalExchange has a market cap of $11.8 billion and is part of the financial sector. The company has a P/E ratio of 21.5, above the S&P 500 P/E ratio of 17.7. Shares are up 31.6% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate IntercontinentalExchange a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates IntercontinentalExchange as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, growth in earnings per share, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full IntercontinentalExchange Ratings Report now.

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1. As of noon trading, Discover Financial Services ( DFS) is up $0.42 (0.96) to $44.16 on light volume Thus far, 1.5 million shares of Discover Financial Services exchanged hands as compared to its average daily volume of 5.1 million shares. The stock has ranged in price between $43.67-$44.19 after having opened the day at $43.72 as compared to the previous trading day's close of $43.74.

Discover Financial Services, a bank holding company, provides direct banking and payment services in the United States. It operates in two segments, Direct Banking and Payment Services. Discover Financial Services has a market cap of $21.8 billion and is part of the financial sector. The company has a P/E ratio of 9.9, below the S&P 500 P/E ratio of 17.7. Shares are up 13.5% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate Discover Financial Services a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Discover Financial Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Discover Financial Services Ratings Report now.

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If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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