5 Financial Stocks Dragging The Sector 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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 5 points (0.0%) at 15,100 as of Thursday, May 9, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,176 issues advancing vs. 1,742 declining with 136 unchanged.

The Financial sector currently sits down 0.17 versus the S&P 500, which is down 0.21. On the negative front, top decliners within the sector include Digital Realty ( DLR), down 3.75, MetLife ( MET), down 1.72, Sun Life Financial ( SLF), down 1.63, Brookfield Asset Management ( BAM), down 1.56 and Citigroup ( C), down 1.38. Top gainers within the sector include Nomura Holdings ( NMR), up 4.9%, Woori Finance Holdings ( WF), up 3.4%, Icahn ( IEP), up 2.6%, Shinhan Financial Group ( SHG), up 1.8% and Weyerhaeuser ( WY), up 1.4%.

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

5. ACE ( ACE) is one of the companies pushing the Financial sector lower today. As of noon trading, ACE is down $0.82 (-0.9%) to $91.44 on average volume Thus far, 816,444 shares of ACE exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $91.43-$92.44 after having opened the day at $92.25 as compared to the previous trading day's close of $92.26.

ACE Limited, through its subsidiaries, provides a range of insurance and reinsurance products to insured's worldwide. ACE has a market cap of $31.1 billion and is part of the insurance industry. The company has a P/E ratio of 11.7, below the S&P 500 P/E ratio of 17.7. Shares are up 15.6% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates ACE 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, attractive valuation levels, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full ACE Ratings Report now.

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4. As of noon trading, Travelers Companies ( TRV) is down $0.74 (-0.8%) to $86.54 on light volume Thus far, 699,393 shares of Travelers Companies exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $86.46-$87.40 after having opened the day at $87.28 as compared to the previous trading day's close of $87.28.

The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. Travelers Companies has a market cap of $32.4 billion and is part of the insurance industry. The company has a P/E ratio of 13.0, below the S&P 500 P/E ratio of 17.7. Shares are up 21.5% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Travelers Companies 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, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Travelers Companies Ratings Report now.

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3. As of noon trading, Prudential Financial ( PRU) is down $0.42 (-0.6%) to $65.54 on light volume Thus far, 824,134 shares of Prudential Financial exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $65.34-$66.08 after having opened the day at $65.90 as compared to the previous trading day's close of $65.97.

Prudential Financial, Inc., through its subsidiaries, provides a range of insurance, investment management, and other financial products and services to both individual and institutional customers in the United States and internationally. Prudential Financial has a market cap of $30.5 billion and is part of the insurance industry. The company has a P/E ratio of 46.9, above the S&P 500 P/E ratio of 17.7. Shares are up 23.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Prudential Financial as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income and increase in stock price during the past year. 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 Prudential Financial Ratings Report now.

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2. As of noon trading, Discover Financial Services ( DFS) is down $0.37 (-0.8%) to $45.69 on light volume Thus far, 1.2 million shares of Discover Financial Services exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $45.56-$46.08 after having opened the day at $46.06 as compared to the previous trading day's close of $46.06.

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 $22.5 billion and is part of the financial services industry. The company has a P/E ratio of 10.3, below the S&P 500 P/E ratio of 17.7. Shares are up 19.5% year to date as of the close of trading on Wednesday.

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 expanding profit margins. 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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1. As of noon trading, Capital One Financial ( COF) is down $0.42 (-0.7%) to $59.12 on light volume Thus far, 1.1 million shares of Capital One Financial exchanged hands as compared to its average daily volume of 5.4 million shares. The stock has ranged in price between $58.84-$59.69 after having opened the day at $59.53 as compared to the previous trading day's close of $59.54.

Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association (COBNA); and Capital One, National Association (CONA), which provide various financial products and services in the United States. Capital One Financial has a market cap of $34.5 billion and is part of the financial services industry. The company has a P/E ratio of 10.7, below the S&P 500 P/E ratio of 17.7. Shares are up 2.0% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Capital One Financial as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Get the full Capital One Financial 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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