Two Harbors Investment Corp (TWO): Today's Featured Financial Winner

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 Harbors Investment ( TWO) pushed the Financial sector higher today making it today's featured financial winner. The sector as a whole closed the day down 0.5%. By the end of trading, Two Harbors Investment rose $0.14 (1.4%) to $9.89 on average volume. Throughout the day, 5,222,024 shares of Two Harbors Investment exchanged hands as compared to its average daily volume of 4,197,400 shares. The stock ranged in a price between $9.66-$9.92 after having opened the day at $9.73 as compared to the previous trading day's close of $9.75. Other companies within the Financial sector that increased today were: Teche ( TSH), up 28.8%, Credit Suisse ( UGAZ), up 16.1%, Life Partners Holdings ( LPHI), up 12.8% and Cash Store Financial Services ( CSFS), up 12.4%.

Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), residential mortgage loans, and other financial assets. Two Harbors Investment has a market cap of $3.5 billion and is part of the real estate industry. The company has a P/E ratio of 5.7, below the S&P 500 P/E ratio of 17.7. Shares are up 5.1% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Two Harbors Investment a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Two Harbors Investment as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and a generally disappointing performance in the stock itself.

On the negative front, Gaming and Leisure Properties ( GLPI), down 18.4%, Credit Suisse ( DGAZ), down 15.7%, American Spectrum Realty ( AQQ), down 11.8% and OptimumBank Holdings ( OPHC), down 10.0% , were all laggards within the financial sector with American Express ( AXP) being today's financial sector laggard.

For investors not wanting singular stock exposure, 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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