HDFC Bank Ltd (HDB): Today's Featured Banking 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.

HDFC Bank ( HDB) pushed the Banking industry lower today making it today's featured Banking laggard. The industry as a whole closed the day up 0.5%. By the end of trading, HDFC Bank fell $0.42 (-1.0%) to $40.25 on average volume. Throughout the day, 1,715,032 shares of HDFC Bank exchanged hands as compared to its average daily volume of 1,246,900 shares. The stock ranged in price between $39.88-$41.05 after having opened the day at $40.94 as compared to the previous trading day's close of $40.67. Other companies within the Banking industry that declined today were: Southwest Georgia Financial Corporation ( SGB), down 4.6%, Guaranty Federal ( GFED), down 4.5%, Polonia Bancorp ( PBCP), down 4.4% and First West Virginia Bancorp ( FWV), down 4.3%.

HDFC Bank Limited, together with its subsidiaries, provides a range of financial products and services to individuals and businesses in India, as well as in Bahrain and Hong Kong. The company operates in four segments: Retail Banking, Wholesale Banking, Treasury, and Other Banking Operations. HDFC Bank has a market cap of $33.0 billion and is part of the financial sector. Shares are up 18.1% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate HDFC Bank a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates HDFC Bank as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and increase in net income. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the positive front, Fauquier Bankshares ( FBSS), up 8.8%, Carolina Trust Bank ( CART), up 7.4%, Enterprise Bancorp ( EBTC), up 5.6% and American River Bankshares ( AMRB), up 5.4% , were all gainers within the banking industry with PNC Financial Services Group ( PNC) being today's featured banking industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the banking industry could consider KBW Bank ETF ( KBE) while those bearish on the banking industry could consider ProShares Short KBW Regional Bankng ( KRS).

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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