5 Financial Services Stocks Dragging The Industry Down

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. 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. A company within the industry that increased today was Western Union Company ( WU), up 5.20.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Charles Schwab ( SCHW) is one of the companies pushing the Financial Services industry lower today. As of noon trading, Charles Schwab is down $0.32 (-1.9%) to $16.64 on average volume Thus far, 4.4 million shares of Charles Schwab exchanged hands as compared to its average daily volume of 9.5 million shares. The stock has ranged in price between $16.61-$17.00 after having opened the day at $16.94 as compared to the previous trading day's close of $16.96.

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 $21.7 billion and is part of the financial sector. The company has a P/E ratio of 24.6, above the S&P 500 P/E ratio of 17.7. Shares are up 18.1% year to date as of the close of trading on Tuesday.

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. Get the full Charles Schwab Ratings Report now.

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4. As of noon trading, State Street ( STT) is down $0.67 (-1.1%) to $57.80 on light volume Thus far, 724,399 shares of State Street exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $57.73-$58.75 after having opened the day at $58.29 as compared to the previous trading day's close of $58.47.

State Street Corporation, a financial holding company, provides investment servicing and investment management services to institutional investors worldwide. State Street has a market cap of $26.5 billion and is part of the financial sector. The company has a P/E ratio of 13.5, below the S&P 500 P/E ratio of 17.7. Shares are up 24.4% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates State Street as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, attractive valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full State Street Ratings Report now.

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3. As of noon trading, BlackRock ( BLK) is down $1.90 (-0.7%) to $264.60 on average volume Thus far, 394,932 shares of BlackRock exchanged hands as compared to its average daily volume of 772,100 shares. The stock has ranged in price between $263.72-$266.50 after having opened the day at $265.42 as compared to the previous trading day's close of $266.50.

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. BlackRock has a market cap of $45.3 billion and is part of the financial sector. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 28.9% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates BlackRock 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 expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full BlackRock Ratings Report now.

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2. As of noon trading, Morgan Stanley ( MS) is down $0.21 (-0.9%) to $21.94 on light volume Thus far, 5.5 million shares of Morgan Stanley exchanged hands as compared to its average daily volume of 19.9 million shares. The stock has ranged in price between $21.68-$22.11 after having opened the day at $22.11 as compared to the previous trading day's close of $22.15.

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. Morgan Stanley has a market cap of $43.5 billion and is part of the financial sector. Shares are up 15.8% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Morgan Stanley as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing. Get the full Morgan Stanley Ratings Report now.

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1. As of noon trading, Visa ( V) is down $1.15 (-0.7%) to $167.31 on average volume Thus far, 1.6 million shares of Visa exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $163.60-$168.26 after having opened the day at $166.71 as compared to the previous trading day's close of $168.46.

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $88.9 billion and is part of the financial sector. The company has a P/E ratio of 46.6, above the S&P 500 P/E ratio of 17.7. Shares are up 11.1% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Visa as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Visa Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

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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