5 Stocks Dragging The Financial Services Industry Downward

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.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 22 points (0.1%) at 15,897 as of Wednesday, Dec. 18, 2013, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,497 issues advancing vs. 1,411 declining with 169 unchanged.

The Financial Services industry currently sits up 0.2% versus the S&P 500, which is unchanged. On the negative front, top decliners within the industry include MarketAxess Holdings ( MKTX), down 1.1%, and Discover Financial Services ( DFS), down 0.8%. Top gainers within the industry include WisdomTree Investments ( WETF), up 4.0%, First Cash Financial Services ( FCFS), up 1.9%, Western Union Company ( WU), up 1.7%, Nomura Holdings ( NMR), up 1.1% and Financial Engines ( FNGN), up 1.0%.

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

5. CBOE Holdings ( CBOE) is one of the companies pushing the Financial Services industry lower today. As of noon trading, CBOE Holdings is down $0.59 (-1.1%) to $51.76 on light volume. Thus far, 172,297 shares of CBOE Holdings exchanged hands as compared to its average daily volume of 519,600 shares. The stock has ranged in price between $51.75-$52.55 after having opened the day at $52.50 as compared to the previous trading day's close of $52.35.

CBOE Holdings, Inc., through its subsidiaries, operates markets for the trading of listed derivatives. CBOE Holdings has a market cap of $4.6 billion and is part of the financial sector. The company has a P/E ratio of 27.4, above the S&P 500 P/E ratio of 17.7. Shares are up 78.5% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate CBOE Holdings a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates CBOE Holdings as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full CBOE Holdings 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, American Capital ( ACAS) is down $0.10 (-0.7%) to $14.50 on light volume. Thus far, 491,931 shares of American Capital exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $14.50-$14.65 after having opened the day at $14.61 as compared to the previous trading day's close of $14.60.

American Capital, Ltd. is a private equity and venture capital firm specializing in management and employee buyouts, leveraged finance, mezzanine, acquisition, recapitalization, middle market, and growth capital investments. American Capital has a market cap of $4.1 billion and is part of the financial sector. Currently there are 3 analysts that rate American Capital a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates American Capital as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share. Get the full American Capital 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, Equifax ( EFX) is down $0.60 (-0.9%) to $66.50 on average volume. Thus far, 260,061 shares of Equifax exchanged hands as compared to its average daily volume of 621,300 shares. The stock has ranged in price between $66.39-$67.13 after having opened the day at $67.02 as compared to the previous trading day's close of $67.10.

Equifax Inc. collects, organizes, and manages various financial, demographic, employment, and marketing information solutions for businesses and consumers. The company's U.S. Equifax has a market cap of $8.3 billion and is part of the financial sector. The company has a P/E ratio of 27.3, above the S&P 500 P/E ratio of 17.7. Shares are up 25.7% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Equifax a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Equifax as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Equifax 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, KKR ( KKR) is down $0.53 (-2.1%) to $24.26 on heavy volume. Thus far, 1.6 million shares of KKR exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $24.19-$24.95 after having opened the day at $24.78 as compared to the previous trading day's close of $24.79.

Kohlberg Kravis Roberts & Co. is a private equity investment firm specializing in acquisitions, leveraged buyouts, management buyouts, special situations, growth equity, mature, and middle market investments. KKR has a market cap of $7.2 billion and is part of the financial sector. The company has a P/E ratio of 14.3, below the S&P 500 P/E ratio of 17.7. Shares are up 62.8% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate KKR a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates KKR as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full KKR 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, NASDAQ OMX Group ( NDAQ) is down $0.33 (-0.8%) to $38.98 on light volume. Thus far, 195,360 shares of NASDAQ OMX Group exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $38.94-$39.40 after having opened the day at $39.25 as compared to the previous trading day's close of $39.31.

The NASDAQ OMX Group, Inc. delivers trading, clearing, exchange technology, regulatory, securities listing, and public company services worldwide. NASDAQ OMX Group has a market cap of $6.5 billion and is part of the financial sector. The company has a P/E ratio of 20.0, above the S&P 500 P/E ratio of 17.7. Shares are up 54.9% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate NASDAQ OMX Group a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates NASDAQ OMX Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full NASDAQ OMX Group 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 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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