3 Stocks Pushing The Financial Sector Lower

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The Financial sector as a whole closed the day up 0.5% versus the S&P 500, which was up 0.6%. Laggards within the Financial sector included Vestin Realty Mortgage I ( VRTA), down 3.4%, Glen Burnie Bancorp ( GLBZ), down 3.5%, Rand Capital ( RAND), down 1.5%, First Capital Bancorp ( FCVA), down 2.5% and IFM Investments ( CTC), down 10.7%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:

Noah Holdings ( NOAH) is one of the companies that pushed the Financial sector lower today. Noah Holdings was down $0.52 (3.8%) to $13.26 on average volume. Throughout the day, 354,699 shares of Noah Holdings exchanged hands as compared to its average daily volume of 364,200 shares. The stock ranged in price between $13.10-$13.98 after having opened the day at $13.87 as compared to the previous trading day's close of $13.78.

Noah Holdings Limited, through its subsidiaries, operates as a wealth management service provider with focus on distributing wealth management products in the People's Republic of China. Noah Holdings has a market cap of $762.0 million and is part of the financial services industry. Shares are down 23.4% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Noah Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Noah Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from TheStreet Ratings analysis on NOAH go as follows:

  • NOAH's very impressive revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues leaped by 54.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Capital Markets industry and the overall market, NOAH HOLDINGS LTD -ADR's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • NOAH HOLDINGS LTD -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NOAH HOLDINGS LTD -ADR increased its bottom line by earning $0.93 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($1.17 versus $0.93).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 75.6% when compared to the same quarter one year prior, rising from $9.61 million to $16.88 million.
  • The gross profit margin for NOAH HOLDINGS LTD -ADR is currently very high, coming in at 77.84%. Regardless of NOAH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NOAH's net profit margin of 33.57% significantly outperformed against the industry.

You can view the full analysis from the report here: Noah Holdings Ratings Report

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At the close, IFM Investments ( CTC) was down $0.12 (10.7%) to $0.96 on heavy volume. Throughout the day, 32,371 shares of IFM Investments exchanged hands as compared to its average daily volume of 18,900 shares. The stock ranged in price between $0.96-$1.12 after having opened the day at $1.10 as compared to the previous trading day's close of $1.08.

IFM Investments Limited, through its subsidiaries, provides real estate services in the People's Republic of China. It operates through four segments: Company-Owned Brokerage Services, Franchise Services, Mortgage Management Services, and Primary and Commercial Services. IFM Investments has a market cap of $16.1 million and is part of the financial services industry. Shares are down 47.3% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates IFM Investments as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CTC go as follows:

  • IFM INVESTMENTS LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, IFM INVESTMENTS LTD reported poor results of -$0.92 versus -$0.57 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Management & Development industry. The net income has significantly decreased by 1913.8% when compared to the same quarter one year ago, falling from -$0.31 million to -$6.26 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Real Estate Management & Development industry and the overall market, IFM INVESTMENTS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for IFM INVESTMENTS LTD is currently extremely low, coming in at 10.05%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -17.65% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 62.68%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2000.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

You can view the full analysis from the report here: IFM Investments Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

First Capital Bancorp ( FCVA) was another company that pushed the Financial sector lower today. First Capital Bancorp was down $0.11 (2.5%) to $4.34 on light volume. Throughout the day, 1,447 shares of First Capital Bancorp exchanged hands as compared to its average daily volume of 4,500 shares. The stock ranged in price between $4.34-$4.50 after having opened the day at $4.39 as compared to the previous trading day's close of $4.45.

First Capital Bancorp, Inc. operates as the bank holding company for First Capital Bank that offers various banking and related financial services to small and medium-sized businesses, professionals, and individuals in Richmond, Virginia metropolitan area. First Capital Bancorp has a market cap of $56.5 million and is part of the financial services industry. Shares are down 4.1% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates First Capital Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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Highlights from TheStreet Ratings analysis on FCVA go as follows:

  • FCVA's revenue growth has slightly outpaced the industry average of 2.2%. Since the same quarter one year prior, revenues slightly increased by 2.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 35.04% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FCVA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • FIRST CAPITAL BANCORP INC/VA has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, FIRST CAPITAL BANCORP INC/VA turned its bottom line around by earning $0.25 versus -$0.84 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 22.9% when compared to the same quarter one year prior, going from $0.80 million to $0.98 million.
  • The gross profit margin for FIRST CAPITAL BANCORP INC/VA is currently very high, coming in at 84.33%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, FCVA's net profit margin of 15.29% significantly trails the industry average.

You can view the full analysis from the report here: First Capital Bancorp Ratings Report

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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