Newcastle Investment Corporation (NCT): Today's Featured Financial Winner

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

Newcastle Investment Corporation ( NCT) pushed the Financial sector higher today making it today's featured financial winner. The sector as a whole closed the day down 0.6%. By the end of trading, Newcastle Investment Corporation rose $0.17 (3.3%) to $5.27 on average volume. Throughout the day, 10,034,190 shares of Newcastle Investment Corporation exchanged hands as compared to its average daily volume of 10,378,300 shares. The stock ranged in a price between $5.21-$5.46 after having opened the day at $5.29 as compared to the previous trading day's close of $5.10. Other companies within the Financial sector that increased today were: Institutional Financial Markets ( IFMI), up 16.7%, ZipRealty ( ZIPR), up 8.3%, Orix Corporation ( IX), up 7.4% and Mizuho Financial Group ( MFG), up 7.3%.
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Newcastle Investment Corp. operates as a real estate investment and finance company in the United States. Newcastle Investment Corporation has a market cap of $1.3 billion and is part of the real estate industry. The company has a P/E ratio of 2.1, below the S&P 500 P/E ratio of 17.7. Shares are down 41.7% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Newcastle Investment Corporation a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Newcastle Investment Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and a generally disappointing performance in the stock itself.

On the negative front, Life Partners Holdings ( LPHI), down 19.1%, Vestin Realty Mortgage II ( VRTB), down 10.3%, Ryman Hospitality Properties ( RHP), down 8.1% and American Spectrum Realty ( AQQ), down 6.7% , were all laggards within the financial sector with HCP ( HCP) being today's financial sector laggard.

For investors not wanting singular stock exposure, 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).

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