3 Stocks Dragging In The Financial Sector

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 3 points (0.0%) at 14,977 as of Monday, May 6, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,675 issues advancing vs. 1,221 declining with 157 unchanged.

The Financial sector currently sits up 0.6% versus the S&P 500, which is up 0.2%. A company within the sector that fell today was MasterCard Incorporated ( MA), up 1.00. Top gainers within the sector include MBIA ( MBI), up 41.1%, Icahn ( IEP), up 4.4%, Blackstone Group ( BX), up 3.1%, Morgan Stanley ( MS), up 2.7% and BlackRock ( BLK), up 1.3%.

TheStreet Ratings group would like to highlight 3 stocks pushing the sector lower today:

3. Nomura Holdings ( NMR) is one of the companies pushing the Financial sector lower today. As of noon trading, Nomura Holdings is down $0.07 (-0.8%) to $8.21 on heavy volume Thus far, 1.7 million shares of Nomura Holdings exchanged hands as compared to its average daily volume of 985,700 shares. The stock has ranged in price between $8.21-$8.29 after having opened the day at $8.28 as compared to the previous trading day's close of $8.28.

Nomura Holdings, Inc. provides financial services in Japan and internationally. The company operates through three divisions: Retail, Asset Management, and Wholesale. Nomura Holdings has a market cap of $29.9 billion and is part of the financial services industry. The company has a P/E ratio of 89.8, above the S&P 500 P/E ratio of 17.7. Shares are up 41.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates Nomura Holdings as a sell. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share. Get the full Nomura Holdings Ratings Report now.

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2. As of noon trading, Mitsubishi UFJ Financial Group ( MTU) is down $0.05 (-0.7%) to $6.84 on heavy volume Thus far, 2.4 million shares of Mitsubishi UFJ Financial Group exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $6.84-$6.88 after having opened the day at $6.87 as compared to the previous trading day's close of $6.89.

Mitsubishi UFJ Financial Group, Inc., through its subsidiaries, provides financial services to individual and corporate customers in Japan and internationally. Mitsubishi UFJ Financial Group has a market cap of $95.6 billion and is part of the banking industry. The company has a P/E ratio of 30.6, above the S&P 500 P/E ratio of 17.7. Shares are up 27.1% year to date as of the close of trading on Friday.

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

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1. As of noon trading, UBS ( UBS) is down $0.14 (-0.8%) to $17.87 on light volume Thus far, 723,796 shares of UBS exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $17.78-$17.90 after having opened the day at $17.85 as compared to the previous trading day's close of $18.01.

UBS AG, a financial services firm, provides wealth management, asset management, and investment banking products and services worldwide. Its Wealth Management division provides financial services to high net worth individuals worldwide. UBS has a market cap of $67.4 billion and is part of the banking industry. The company has a P/E ratio of 16.7, below the S&P 500 P/E ratio of 17.7. Shares are up 14.4% year to date as of the close of trading on Friday.

TheStreet Ratings rates UBS as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins and feeble growth in its earnings per share. Get the full UBS 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 5 stocks, 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).

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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