3 Financial Stocks Dragging The Sector Down

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 79 points (-0.5%) at 15,419 as of Friday, Aug. 9, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,348 issues advancing vs. 1,561 declining with 117 unchanged.

The Financial sector currently sits up 0.1% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include SunTrust Banks ( STI), down 1.8%, Bank of America Corporation ( BAC), down 1.0%, T. Rowe Price Group ( TROW), down 0.8%, Citigroup ( C), down 0.7% and Aflac ( AFL), down 0.7%. Top gainers within the sector include Noah Holdings ( NOAH), up 25.8%, Banco Santander Chile ( BSAC), up 2.3%, Credit Suisse Group ( CS), up 1.9%, Prologis ( PLD), up 1.8% and American Tower ( AMT), up 1.9%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Discover Financial Services ( DFS) is one of the companies pushing the Financial sector lower today. As of noon trading, Discover Financial Services is down $0.54 (-1.1%) to $50.34 on light volume. Thus far, 902,512 shares of Discover Financial Services exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $50.20-$51.18 after having opened the day at $50.75 as compared to the previous trading day's close of $50.88.

Discover Financial Services, a bank holding company, provides direct banking and payment services in the United States. It operates in two segments, Direct Banking and Payment Services. Discover Financial Services has a market cap of $24.4 billion and is part of the financial services industry. Shares are up 30.7% year to date as of the close of trading on Thursday. Currently there are 13 analysts that rate Discover Financial Services a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Discover Financial Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Discover Financial Services 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, American Express ( AXP) is down $0.88 (-1.2%) to $75.31 on light volume. Thus far, 1.7 million shares of American Express exchanged hands as compared to its average daily volume of 5.8 million shares. The stock has ranged in price between $75.01-$76.36 after having opened the day at $76.15 as compared to the previous trading day's close of $76.19.

American Express Company provides charge and credit payment card products and travel-related services to customers worldwide. American Express has a market cap of $81.1 billion and is part of the financial services industry. Shares are up 32.6% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate American Express a buy, 2 analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates American Express as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full American Express 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, Berkshire Hathaway ( BRK.B) is down $0.80 (-0.7%) to $116.84 on light volume. Thus far, 1.0 million shares of Berkshire Hathaway exchanged hands as compared to its average daily volume of 3.9 million shares. The stock has ranged in price between $116.51-$117.74 after having opened the day at $117.50 as compared to the previous trading day's close of $117.64.

Berkshire Hathaway, Inc. is a publicly owned investment manager. Through its subsidiaries, the firm primarily engages in the insurance and reinsurance of property and casualty risks business. Berkshire Hathaway was founded in 1889 and is based in Omaha, Nebraska. Berkshire Hathaway has a market cap of $135.8 billion and is part of the insurance industry. Shares are up 30.2% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Berkshire Hathaway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, compelling growth 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 Berkshire Hathaway 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 5 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).
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