Charles Schwab Corp (SCHW): Today's Featured Financial Services 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

Charles Schwab ( SCHW) pushed the Financial Services industry higher today making it today's featured financial services winner. The industry as a whole closed the day up 0.8%. By the end of trading, Charles Schwab rose $0.61 (3.1%) to $20.32 on average volume. Throughout the day, 9,879,447 shares of Charles Schwab exchanged hands as compared to its average daily volume of 9,414,100 shares. The stock ranged in a price between $19.87-$20.40 after having opened the day at $19.88 as compared to the previous trading day's close of $19.71. Other companies within the Financial Services industry that increased today were: Atlanticus Holdings ( ATLC), up 7.6%, Lazard ( LAZ), up 6.4%, CIFC ( CIFC), up 5.5% and FXCM ( FXCM), up 5.4%.
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The Charles Schwab Corporation, through its subsidiaries, provides securities brokerage, banking, money management, and financial advisory services to individuals and institutional clients. The company operates through two segments, Investor Services and Institutional Services. Charles Schwab has a market cap of $25.7 billion and is part of the financial sector. The company has a P/E ratio of 29.0, above the S&P 500 P/E ratio of 17.7. Shares are up 37.3% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Charles Schwab a buy, 4 analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Charles Schwab as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Resource America Inc. CL A ( REXI), down 7.2%, CorEnergy Infrastructure ( CORR), down 6.1%, Federal Agricultural Mortgage ( AGM.A), down 5.0% and China Ceramics ( CCCL), down 4.2%.

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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