Bank Of America Corporation (BAC): 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 America Corporation ( BAC) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Bank of America Corporation fell $0.14 (-1.1%) to $13.07 on light volume. Throughout the day, 85,439,580 shares of Bank of America Corporation exchanged hands as compared to its average daily volume of 136,877,100 shares. The stock ranged in price between $13.03-$13.24 after having opened the day at $13.23 as compared to the previous trading day's close of $13.21. Other companies within the Banking industry that declined today were: Magyar Bancorp ( MGYR), down 10.2%, Broadway Financial ( BYFC), down 10.0%, C&F Financial Corporation ( CFFI), down 7.0% and National Bank of Greece ( NBG), down 6.0%.
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Bank of America Corporation, through its subsidiaries, provides various banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, corporations, and governments in the United States and internationally. Bank of America Corporation has a market cap of $140.8 billion and is part of the financial sector. The company has a P/E ratio of 39.6, above the S&P 500 P/E ratio of 17.7. Shares are up 13.8% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate Bank of America Corporation a buy, 2 analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates Bank of America Corporation as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

On the positive front, BCSB Bankcorp ( BCSB), down 28.4%, Carver Bancorp ( CARV), down 16.0%, Prudential Bancorp Inc. of Pennsylvania ( PBIP), down 15.1% and Cordia Bancorp ( BVA), down 13.4%.

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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