5 Stocks Pulling The Financial Sector Downward

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

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 13 points (0.1%) at 15,338 as of Friday, May 31, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 963 issues advancing vs. 1,995 declining with 88 unchanged.

The Financial sector currently sits down 0.39 versus the S&P 500, which is down 0.09. On the negative front, top decliners within the sector include Orix Corporation ( IX), down 5.03, Aegon ( AEG), down 3.04, American International Group ( AIG), down 2.78, ING Groep N.V ( ING), down 1.69 and Health Care REIT ( HCN), down 1.70. Top gainers within the sector include Morgan Stanley ( MS), up 1.7%, MetLife ( MET), up 1.5%, Weyerhaeuser ( WY), up 1.2%, American Express ( AXP), up 1.3% and State Street ( STT), up 0.8%.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector lower today:

5. Nomura Holdings ( NMR) is one of the companies pushing the Financial sector lower today. As of noon trading, Nomura Holdings is down $0.43 (-5.3%) to $7.77 on heavy volume Thus far, 1.4 million shares of Nomura Holdings exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $7.68-$7.82 after having opened the day at $7.74 as compared to the previous trading day's close of $8.20.

Nomura Holdings, Inc. provides financial services in Japan and internationally. The company operates through three divisions: Retail, Asset Management, and Wholesale. Nomura Holdings has a market cap of $30.2 billion and is part of the financial services industry. The company has a P/E ratio of 90.6, above the S&P 500 P/E ratio of 17.7. Shares are up 39.7% year to date as of the close of trading on Thursday. Currently there is 1 analyst that rates Nomura Holdings a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Nomura Holdings as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that revenues have generally been declining. Get the full Nomura Holdings Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, Canadian Imperial Bank of Commerce ( CM) is down $1.17 (-1.5%) to $75.73 on heavy volume Thus far, 171,957 shares of Canadian Imperial Bank of Commerce exchanged hands as compared to its average daily volume of 203,600 shares. The stock has ranged in price between $75.55-$76.70 after having opened the day at $76.70 as compared to the previous trading day's close of $76.90.

Canadian Imperial Bank of Commerce provides various financial products and services to individual, small business, commercial, corporate, and institutional customers in Canada and internationally. Canadian Imperial Bank of Commerce has a market cap of $31.1 billion and is part of the banking industry. The company has a P/E ratio of 9.9, below the S&P 500 P/E ratio of 17.7. Shares are down 3.7% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Canadian Imperial Bank of Commerce a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Canadian Imperial Bank of Commerce as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow. Get the full Canadian Imperial Bank of Commerce Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, HDFC Bank ( HDB) is down $1.38 (-3.3%) to $40.50 on average volume Thus far, 416,371 shares of HDFC Bank exchanged hands as compared to its average daily volume of 674,600 shares. The stock has ranged in price between $40.00-$41.01 after having opened the day at $40.73 as compared to the previous trading day's close of $41.89.

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 $32.7 billion and is part of the banking industry. The company has a P/E ratio of 33.7, above the S&P 500 P/E ratio of 17.7. Shares are up 2.9% year to date as of the close of trading on Thursday. 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 growth in earnings per share. 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. Get the full HDFC Bank Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Toronto-Dominion Bank ( TD) is down $0.71 (-0.9%) to $81.14 on average volume Thus far, 271,088 shares of Toronto-Dominion Bank exchanged hands as compared to its average daily volume of 537,400 shares. The stock has ranged in price between $80.97-$81.54 after having opened the day at $81.45 as compared to the previous trading day's close of $81.85.

The Toronto-Dominion Bank, together with its subsidiaries, provides financial and banking services in North America and internationally. The company's Canadian Personal and Commercial Banking segment offers various financial products and services to personal and small business customers. Toronto-Dominion Bank has a market cap of $75.0 billion and is part of the banking industry. The company has a P/E ratio of 11.7, below the S&P 500 P/E ratio of 17.7. Shares are down 2.9% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate Toronto-Dominion Bank a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Toronto-Dominion Bank as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing. Get the full Toronto-Dominion Bank Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Aon plc ( AON) is down $1.12 (-1.7%) to $65.29 on average volume Thus far, 882,018 shares of Aon plc exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $65.27-$66.33 after having opened the day at $65.88 as compared to the previous trading day's close of $66.41.

Aon plc provides risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing services worldwide. Aon plc has a market cap of $20.5 billion and is part of the insurance industry. The company has a P/E ratio of 21.4, above the S&P 500 P/E ratio of 17.7. Shares are up 19.4% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate Aon plc a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Aon plc as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Aon plc Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 3 stocks, 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).

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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