State Street Corp (STT): Today's Featured Financial Services 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

State Street ( STT) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole was unchanged today. By the end of trading, State Street fell $1.02 (-1.6%) to $64.95 on heavy volume. Throughout the day, 5,638,112 shares of State Street exchanged hands as compared to its average daily volume of 3,106,000 shares. The stock ranged in price between $64.07-$66.75 after having opened the day at $66.75 as compared to the previous trading day's close of $65.97. Other companies within the Financial Services industry that declined today were: WhiteHorse Finance ( WHF), down 6.8%, Global Cash Access Holdings ( GCA), down 5.6%, GFI Group ( GFIG), down 5.1% and AllianceBernstein Holding L.P ( AB), down 4.8%.
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State Street Corporation, a financial holding company, provides investment servicing and investment management services to institutional investors worldwide. State Street has a market cap of $30.4 billion and is part of the financial sector. The company has a P/E ratio of 15.4, below the S&P 500 P/E ratio of 17.7. Shares are up 40.4% year to date as of the close of trading on Thursday. Currently there are 13 analysts that rate State Street a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates State Street as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, attractive valuation levels, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Federal Agricultural Mortgage ( AGM.A), down 10.1%, SWS Group ( SWS), down 6.0%, MoneyGram International ( MGI), down 5.3% and Community Bankers Trust Corporation ( ESXB), down 5.1%.

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).

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

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