5 Stocks Raising The Financial Services Industry Higher

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 47 points (0.3%) at 15,382 as of Tuesday, May 21, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,570 issues advancing vs. 1,367 declining with 136 unchanged.

The Financial Services industry currently is unchanged today versus the S&P 500, which is up 0.2%. A company within the industry that increased today was T. Rowe Price Group ( TROW), up 0.82.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry higher today:

5. Discover Financial Services ( DFS) is one of the companies pushing the Financial Services industry higher today. As of noon trading, Discover Financial Services is up $0.84 (1.75) to $49.04 on average volume Thus far, 2.4 million shares of Discover Financial Services exchanged hands as compared to its average daily volume of 4.9 million shares. The stock has ranged in price between $48.33-$49.23 after having opened the day at $48.36 as compared to the previous trading day's close of $48.19.

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 $23.4 billion and is part of the financial sector. The company has a P/E ratio of 10.7, below the S&P 500 P/E ratio of 17.7. Shares are up 25.0% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate Discover Financial Services a buy, no analysts rate it a sell, and 4 rate it a hold.

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 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 Discover Financial Services Ratings Report now.

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4. As of noon trading, Capital One Financial ( COF) is up $0.33 (0.53) to $62.14 on light volume Thus far, 1.8 million shares of Capital One Financial exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $61.59-$62.41 after having opened the day at $61.86 as compared to the previous trading day's close of $61.81.

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 $35.5 billion and is part of the financial sector. The company has a P/E ratio of 10.8, below the S&P 500 P/E ratio of 17.7. Shares are up 5.0% year to date as of the close of trading on Monday. Currently there are 19 analysts that rate Capital One Financial a buy, no analysts rate it a sell, and 4 rate it a hold.

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, good cash flow from operations 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.

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3. As of noon trading, MasterCard Incorporated ( MA) is up $4.19 (0.72) to $587.53 on light volume Thus far, 145,009 shares of MasterCard Incorporated exchanged hands as compared to its average daily volume of 573,900 shares. The stock has ranged in price between $582.40-$588.86 after having opened the day at $584.53 as compared to the previous trading day's close of $583.34.

MasterCard Incorporated, together with its subsidiaries, provides transaction processing and other payment-related services in the United States and internationally. MasterCard Incorporated has a market cap of $68.3 billion and is part of the financial sector. The company has a P/E ratio of 25.6, above the S&P 500 P/E ratio of 17.7. Shares are up 18.7% year to date as of the close of trading on Monday. Currently there are 18 analysts that rate MasterCard Incorporated a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates MasterCard Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, increase in net income, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full MasterCard Incorporated Ratings Report now.

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2. As of noon trading, American Express ( AXP) is up $0.79 (1.06) to $75.19 on average volume Thus far, 2.7 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 $74.40-$75.41 after having opened the day at $74.46 as compared to the previous trading day's close of $74.40.

American Express Company provides charge and credit payment card products and travel-related services to customers worldwide. American Express has a market cap of $80.6 billion and is part of the financial sector. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 27.6% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate American Express a buy, 1 analyst rates it a sell, and 11 rate it a hold.

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, solid stock price performance 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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1. As of noon trading, Goldman Sachs Group ( GS) is up $1.81 (1.14) to $160.71 on average volume Thus far, 2.5 million shares of Goldman Sachs Group exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $158.53-$161.74 after having opened the day at $158.73 as compared to the previous trading day's close of $158.90.

The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services, as well as financial services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Goldman Sachs Group has a market cap of $72.5 billion and is part of the financial sector. The company has a P/E ratio of 10.9, below the S&P 500 P/E ratio of 17.7. Shares are up 24.0% year to date as of the close of trading on Monday. Currently there are 4 analysts that rate Goldman Sachs Group a buy, 1 analyst rates it a sell, and 15 rate it a hold.

TheStreet Ratings rates Goldman Sachs Group 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, attractive valuation levels, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Goldman Sachs Group 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 services industry could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial services industry 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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