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

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.

State Street ( STT) pushed the Financial Services industry lower today making it today's featured Financial Services laggard. The industry as a whole closed the day down 0.3%. By the end of trading, State Street fell $1.39 (-1.9%) to $71.50 on light volume. Throughout the day, 1,614,262 shares of State Street exchanged hands as compared to its average daily volume of 2,413,800 shares. The stock ranged in price between $71.22-$72.72 after having opened the day at $72.54 as compared to the previous trading day's close of $72.89. Other companies within the Financial Services industry that declined today were: Medallion Financial ( TAXI), down 8.8%, China Ceramics ( CCCL), down 7.0%, Regional Management ( RM), down 6.6% and Direxion Daily Gold Miners Bull 3X Shares ( NUGT), down 5.2%.

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 $31.9 billion and is part of the financial sector. The company has a P/E ratio of 16.5, below the S&P 500 P/E ratio of 17.7. Shares are up 54.5% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate State Street a buy, 1 analyst rates it a sell, and 5 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 revenue growth, solid stock price performance, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Cash Store Financial Services ( CSFS), up 14.0%, ProShares Ultra DJ-UBS Crude Oil ( UCO), up 5.0%, Direxion Daily Gold Miners Bear 3X Shares ( DUST), up 4.9% and Ladenburg Thalman Financial Services ( LTS), up 3.8%.

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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