Wells Fargo & Co (WFC): Today's Featured Financial Laggard

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

Wells Fargo ( WFC) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Wells Fargo fell $0.56 (-1.5%) to $37.89 on average volume. Throughout the day, 27,665,371 shares of Wells Fargo exchanged hands as compared to its average daily volume of 22,105,900 shares. The stock ranged in price between $37.78-$38.51 after having opened the day at $38.45 as compared to the previous trading day's close of $38.45. Other companies within the Financial sector that declined today were: Donegal Group ( DGICB), down 9.2%, Doral Financial ( DRL), down 9.0%, INTL FCStone ( INTL), down 8.2% and Elbit Imaging ( EMITF), down 8.2%.
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Wells Fargo & Company provides retail, commercial, and corporate banking services. Wells Fargo has a market cap of $202.5 billion and is part of the banking industry. The company has a P/E ratio of 10.9, below the S&P 500 P/E ratio of 17.7. Shares are up 12.5% year to date as of the close of trading on Wednesday. Currently there are 16 analysts that rate Wells Fargo a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Wells Fargo as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Bank VA Chesterfield ( BOVA), down 13.5%, Cordia Bancorp ( BVA), down 13.5%, Capital ( CT), down 10.8% and Blackstone Mortgate ( BXMT), down 10.8% , were all gainers within the financial sector with Assured Guaranty ( AGO) being today's featured financial sector leader.

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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