HDFC Bank Ltd (HDB): Today's Featured Banking 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

HDFC Bank ( HDB) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day up 0.2%. By the end of trading, HDFC Bank fell $0.60 (-1.4%) to $42.39 on light volume. Throughout the day, 232,767 shares of HDFC Bank exchanged hands as compared to its average daily volume of 720,600 shares. The stock ranged in price between $42.23-$43.00 after having opened the day at $42.92 as compared to the previous trading day's close of $42.99. Other companies within the Banking industry that declined today were: National Bank of Greece ( NBG), down 33.9%, Credit Suisse ( DSLV), down 11.2%, Credit Suisse ( UOIL), down 8.0% and Village Bank and Trust Financial Corporatio ( VBFC), down 6.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

HDFC Bank Limited, together with its subsidiaries, provides retail banking, wholesale banking, treasury, and other financial services to individual and business customers in India. HDFC Bank has a market cap of $33.4 billion and is part of the financial sector. The company has a P/E ratio of 34.4, above the S&P 500 P/E ratio of 17.7. Shares are up 5.6% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate HDFC Bank a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates HDFC Bank as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, First Security Group ( FSGI), down 10.6%, Mackinac Financial Corporation ( MFNC), down 7.0%, Porter Bancorp ( PBIB), down 6.0% and Pathfinder Bancorp ( PBHC), down 6.0% , were all gainers within the banking industry with Toronto-Dominion Bank ( TD) being today's featured banking industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the banking industry could consider KBW Bank ETF ( KBE) while those bearish on the banking industry could consider ProShares Short KBW Regional Bankng ( KRS).

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.