5 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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 23 points (-0.2%) at 15,060 as of Friday, May 10, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,550 issues advancing vs. 1,371 declining with 121 unchanged.

The Financial sector currently is unchanged today versus the S&P 500, which is unchanged. On the negative front, top decliners within the sector include Shinhan Financial Group ( SHG), down 3.00, Aegon ( AEG), down 2.43, Deutsche Bank ( DB), down 1.83, American Capital Agency ( AGNC), down 1.81 and Orix Corporation ( IX), down 1.64. Top gainers within the sector include Charles Schwab ( SCHW), up 3.3%, TD Ameritrade Holding Corporation ( AMTD), up 3.0%, Nomura Holdings ( NMR), up 1.9%, Lloyds Banking Group ( LYG), up 1.7% and Credit Suisse Group ( CS), up 1.0%.

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

5. Bank of Montreal ( BMO) is one of the companies pushing the Financial sector lower today. As of noon trading, Bank of Montreal is down $0.52 (-0.8%) to $61.76 on average volume Thus far, 196,635 shares of Bank of Montreal exchanged hands as compared to its average daily volume of 470,000 shares. The stock has ranged in price between $61.62-$62.20 after having opened the day at $62.17 as compared to the previous trading day's close of $62.28.

Bank of Montreal, together with its subsidiaries, provides various retail banking, wealth management, and investment banking products and services in North America and internationally. Bank of Montreal has a market cap of $41.2 billion and is part of the banking industry. The company has a P/E ratio of 10.4, below the S&P 500 P/E ratio of 17.7. Shares are up 3.0% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Bank of Montreal as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, increase in stock price during the past year and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow. Get the full Bank of Montreal Ratings Report now.

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4. As of noon trading, Royal Bank Of Canada ( RY) is down $0.45 (-0.7%) to $60.68 on light volume Thus far, 193,618 shares of Royal Bank Of Canada exchanged hands as compared to its average daily volume of 615,500 shares. The stock has ranged in price between $60.54-$61.00 after having opened the day at $60.83 as compared to the previous trading day's close of $61.13.

Royal Bank of Canada provides personal and commercial banking, wealth management, insurance, investor and treasury, and capital markets services worldwide. Royal Bank Of Canada has a market cap of $89.6 billion and is part of the banking industry. The company has a P/E ratio of 12.1, below the S&P 500 P/E ratio of 17.7. Shares are up 1.4% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Royal Bank Of Canada as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and growth in earnings per share. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall. Get the full Royal Bank Of Canada Ratings Report now.

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3. As of noon trading, Banco Santander ( SAN) is down $0.17 (-2.3%) to $7.14 on average volume Thus far, 2.6 million shares of Banco Santander exchanged hands as compared to its average daily volume of 6.1 million shares. The stock has ranged in price between $7.13-$7.20 after having opened the day at $7.19 as compared to the previous trading day's close of $7.31.

Banco Santander-Chile provides commercial and retail banking services to corporate and individual customers in Chile. Banco Santander has a market cap of $78.7 billion and is part of the banking industry. Shares are down 10.5% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Banco Santander as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, premium valuation and deteriorating net income. Get the full Banco Santander Ratings Report now.

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2. As of noon trading, Aflac ( AFL) is down $1.04 (-1.9%) to $53.81 on average volume Thus far, 2.2 million shares of Aflac exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $53.62-$54.80 after having opened the day at $54.77 as compared to the previous trading day's close of $54.85.

Aflac Incorporated, through its subsidiary, American Family Life Assurance Company of Columbus, provides supplemental health and life insurance products. Aflac has a market cap of $26.1 billion and is part of the insurance industry. The company has a P/E ratio of 8.8, below the S&P 500 P/E ratio of 17.7. Shares are up 3.3% year to date as of the close of trading on Thursday.

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

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1. As of noon trading, American Express ( AXP) is down $0.42 (-0.6%) to $69.79 on light volume Thus far, 1.8 million shares of American Express exchanged hands as compared to its average daily volume of 5.2 million shares. The stock has ranged in price between $69.66-$70.25 after having opened the day at $70.16 as compared to the previous trading day's close of $70.21.

American Express Company provides charge and credit payment card products and travel-related services to customers worldwide. American Express has a market cap of $77.2 billion and is part of the financial services industry. The company has a P/E ratio of 17.7, equal to the S&P 500 P/E ratio of 17.7. Shares are up 22.1% year to date as of the close of trading on Thursday.

TheStreet Ratings rates American Express as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full American Express Ratings Report now.

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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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