3 Stocks Dragging In The Financial Services Industry

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 11 points (0.1%) at 16,218 as of Tuesday, Feb. 25, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,600 issues advancing vs. 1,298 declining with 186 unchanged.

The Financial Services industry currently is unchanged today versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Apollo Investment ( AINV), down 6.0%, Prospect Capital Corporation ( PSEC), down 2.7%, Western Union Company ( WU), down 1.5%, American Capital ( ACAS), down 1.4% and SLM ( SLM), down 1.3%. A company within the industry that increased today was Orix Corporation ( IX), up 0.8%.

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

3. State Street ( STT) is one of the companies pushing the Financial Services industry lower today. As of noon trading, State Street is down $0.66 (-1.0%) to $68.41 on light volume. Thus far, 741,938 shares of State Street exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $67.89-$69.02 after having opened the day at $69.01 as compared to the previous trading day's close of $69.07.

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 $30.1 billion and is part of the financial sector. Shares are down 5.9% year-to-date as of the close of trading on Monday. Currently there are 10 analysts that rate State Street a buy, 2 analysts rate it a sell, and 4 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, increase in stock price during the past year, growth in earnings per share, increase in net income and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. 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 $0.67 (-0.9%) to $71.06 on average volume. Thus far, 1.4 million 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 $70.72-$71.86 after having opened the day at $71.81 as compared to the previous trading day's close of $71.73.

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 $40.9 billion and is part of the financial sector. Shares are down 6.4% year-to-date as of the close of trading on Monday. Currently there are 16 analysts that rate Capital One Financial a buy, no analysts rate it a sell, and 7 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 solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins. 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, Morgan Stanley ( MS) is down $0.21 (-0.7%) to $30.10 on light volume. Thus far, 3.5 million shares of Morgan Stanley exchanged hands as compared to its average daily volume of 12.6 million shares. The stock has ranged in price between $29.95-$30.36 after having opened the day at $30.26 as compared to the previous trading day's close of $30.31.

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. Morgan Stanley has a market cap of $57.8 billion and is part of the financial sector. Shares are down 3.4% year-to-date as of the close of trading on Monday. Currently there are 9 analysts that rate Morgan Stanley a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Morgan Stanley as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive. Get the full Morgan Stanley 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 3 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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