Validus Holdings Inc. (VR): 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

Validus Holdings ( VR) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Validus Holdings fell $0.57 (-1.5%) to $36.57 on heavy volume. Throughout the day, 1,538,035 shares of Validus Holdings exchanged hands as compared to its average daily volume of 924,500 shares. The stock ranged in price between $36.52-$37.32 after having opened the day at $37.20 as compared to the previous trading day's close of $37.14. Other companies within the Financial sector that declined today were: First Security Group ( FSGI), down 17.6%, Credit Suisse ( DGAZ), down 8.8%, CMS Bancorp ( CMSB), down 7.2% and Village Bank and Trust Financial Corporatio ( VBFC), down 5.6%.
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Validus Holdings, Ltd. through its subsidiaries, provides reinsurance, insurance, and insurance linked securities fund management services in the property, marine, and specialty lines markets worldwide. Validus Holdings has a market cap of $4.0 billion and is part of the insurance industry. The company has a P/E ratio of 8.1, below the S&P 500 P/E ratio of 17.7. Shares are up 7.4% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate Validus Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Validus Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, notable return on equity, compelling growth in net income and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, National Bank of Greece ( NBG), down 19.5%, Vestin Realty Mortgage I ( VRTA), down 14.4%, Jacksonville Bancorp ( JAXB), down 13.0% and Investors Capital Holdings ( ICH), down 12.8% , were all gainers within the financial sector with PNC Financial Services Group ( PNC) 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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