Bank Of Montreal (BMO): 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

Bank of Montreal ( BMO) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day down 0.6%. By the end of trading, Bank of Montreal fell $0.85 (-1.4%) to $60.36 on heavy volume. Throughout the day, 967,610 shares of Bank of Montreal exchanged hands as compared to its average daily volume of 499,200 shares. The stock ranged in price between $59.58-$60.57 after having opened the day at $60.57 as compared to the previous trading day's close of $61.21. Other companies within the Banking industry that declined today were: First Security Group ( FSGI), down 7.2%, First ( FBMS), down 7.2%, Credit Suisse ( UWTI), down 6.7% and Carolina Trust Bank ( CART), down 6.2%.
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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 $39.7 billion and is part of the financial sector. The company has a P/E ratio of 10.1, below the S&P 500 P/E ratio of 17.7. Shares are down 0.2% year to date as of the close of trading on Tuesday. Currently there is 1 analyst that rates Bank of Montreal a buy, 2 analysts rate it a sell, and 4 rate it a hold.

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.

On the positive front, Credit Suisse ( DWTI), down 7.4%, Bank of the James Financial Group ( BOTJ), down 6.9%, First Community Corporation ( FCCO), down 6.4% and American River Bankshares ( AMRB), down 5.4% , were all gainers within the banking industry with PNC Financial Services Group ( PNC) 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).

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