5 Financial Services Stocks Dragging The Industry 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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 27 points (-0.2%) at 15,858 as of Tuesday, Dec. 17, 2013, 11:55 AM ET. The NYSE advances/declines ratio sits at 997 issues advancing vs. 1,953 declining with 153 unchanged.

The Financial Services industry currently sits down 0.2% versus the S&P 500, which is down 0.5%. On the negative front, top decliners within the industry include KKR ( KKR), down 2.8%, Financial Engines ( FNGN), down 2.6%, Nomura Holdings ( NMR), down 1.9%, Equifax ( EFX), down 1.7% and TD Ameritrade Holding Corporation ( AMTD), down 1.6%.

TheStreet would like to highlight 5 stocks pushing the industry lower today:

5. Bank of New York Mellon ( BK) is one of the companies pushing the Financial Services industry lower today. As of noon trading, Bank of New York Mellon is down $0.23 (-0.7%) to $32.91 on light volume. Thus far, 1.1 million shares of Bank of New York Mellon exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $32.85-$33.15 after having opened the day at $33.13 as compared to the previous trading day's close of $33.14.

The Bank of New York Mellon Corporation provides various financial products and services worldwide. It operates through Investment Management, Investment Services, and Other segments. Bank of New York Mellon has a market cap of $37.8 billion and is part of the financial sector. The company has a P/E ratio of 18.1, above the S&P 500 P/E ratio of 17.7. Shares are up 28.9% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate Bank of New York Mellon a buy, 2 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Bank of New York Mellon as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Bank of New York Mellon 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.

4. As of noon trading, Discover Financial Services ( DFS) is down $0.53 (-1.0%) to $53.19 on light volume. Thus far, 708,004 shares of Discover Financial Services exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $53.07-$53.90 after having opened the day at $53.87 as compared to the previous trading day's close of $53.72.

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 $25.3 billion and is part of the financial sector. The company has a P/E ratio of 11.9, below the S&P 500 P/E ratio of 17.7. Shares are up 37.5% year to date as of the close of trading on Monday. Currently there are 15 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, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. 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.

3. As of noon trading, State Street ( STT) is down $0.46 (-0.7%) to $69.56 on light volume. Thus far, 376,727 shares of State Street exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $69.33-$70.27 after having opened the day at $70.03 as compared to the previous trading day's close of $70.02.

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 $30.6 billion and is part of the financial sector. The company has a P/E ratio of 15.8, below the S&P 500 P/E ratio of 17.7. Shares are up 48.3% 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. Get the full State Street 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, Capital One Financial ( COF) is down $0.53 (-0.7%) to $71.65 on light volume. Thus far, 621,078 shares of Capital One Financial exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $71.47-$72.95 after having opened the day at $72.72 as compared to the previous trading day's close of $72.18.

Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association (COBNA); and Capital One, National Association (CONA), which provide various financial products and services in the United States. Capital One Financial has a market cap of $41.2 billion and is part of the financial sector. The company has a P/E ratio of 9.8, below the S&P 500 P/E ratio of 17.7. Shares are up 24.6% year to date as of the close of trading on Monday. Currently there are 17 analysts that rate Capital One Financial a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Capital One Financial as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Capital One Financial 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, Charles Schwab ( SCHW) is down $0.33 (-1.3%) to $24.76 on light volume. Thus far, 2.3 million shares of Charles Schwab exchanged hands as compared to its average daily volume of 8.9 million shares. The stock has ranged in price between $24.75-$25.09 after having opened the day at $25.09 as compared to the previous trading day's close of $25.09.

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 $32.0 billion and is part of the financial sector. The company has a P/E ratio of 35.4, above the S&P 500 P/E ratio of 17.7. Shares are up 72.6% year to date as of the close of trading on Monday. Currently there are 4 analysts that rate Charles Schwab a buy, 2 analysts rate it a sell, and 6 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, expanding profit margins, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Charles Schwab 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 4 stocks, 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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