Morgan Stanley (MS): Today's Featured Financial Services 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

Morgan Stanley ( MS) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Morgan Stanley fell $0.45 (-1.8%) to $24.25 on average volume. Throughout the day, 22,617,962 shares of Morgan Stanley exchanged hands as compared to its average daily volume of 19,169,100 shares. The stock ranged in price between $24.00-$24.76 after having opened the day at $24.19 as compared to the previous trading day's close of $24.70. Other companies within the Financial Services industry that declined today were: Orix Corporation ( IX), down 9.5%, Nomura Holdings ( NMR), down 7.0%, Federal Agricultural Mortgage ( AGM.A), down 6.2% and Noah Holdings ( NOAH), down 5.0%.
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Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. Morgan Stanley has a market cap of $49.2 billion and is part of the financial sector. The company has a P/E ratio of 44.9, above the S&P 500 P/E ratio of 17.7. Shares are up 29.2% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Morgan Stanley a buy, 2 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Morgan Stanley as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.

On the positive front, Credit Acceptance Corporation ( CACC), down 2.7%, Atlanticus Holdings ( ATLC), down 2.7%, US Global Investors ( GROW), down 2.6% and Investors Capital Holdings ( ICH), down 2.2% , were all gainers within the financial services industry with CME Group ( CME) being today's featured financial services industry leader.

For investors not wanting singular stock exposure, 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).

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