3 Financial Services Stocks Driving The Industry Higher

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 out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 28 points (-0.2%) at 16,647 as of Wednesday, May 28, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,518 issues advancing vs. 1,472 declining with 153 unchanged.

The Financial Services industry currently is unchanged today versus the S&P 500, which is unchanged. A company within the industry that increased today was Western Union ( WU), up 0.6%. On the negative front, top decliners within the industry include WisdomTree Investments ( WETF), down 3.4%, Credit Acceptance ( CACC), down 1.8%, Prospect Capital Corporation ( PSEC), down 1.4%, American Capital ( ACAS), down 1.4% and Affiliated Managers Group ( AMG), down 1.3%.

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

3. NASDAQ OMX Group ( NDAQ) is one of the companies pushing the Financial Services industry higher today. As of noon trading, NASDAQ OMX Group is up $0.40 (1.1%) to $37.32 on light volume. Thus far, 479,800 shares of NASDAQ OMX Group exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $36.91-$37.46 after having opened the day at $37.00 as compared to the previous trading day's close of $36.92.

The NASDAQ OMX Group, Inc. delivers trading, clearing, exchange technology, regulatory, securities listing, and public company services worldwide. It operates in four segments: Market Services, Listing Services, Information Services, and Technology Solutions. NASDAQ OMX Group has a market cap of $6.2 billion and is part of the financial sector. Shares are down 8.4% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts who rate NASDAQ OMX Group a buy, no analysts rate it a sell, and 4 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 revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full NASDAQ OMX Group Ratings Report now.

3x UPSIDE POTENTIAL: 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, Discover Financial Services ( DFS) is up $0.52 (0.9%) to $58.60 on light volume. Thus far, 934,593 shares of Discover Financial Services exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $58.01-$58.66 after having opened the day at $58.12 as compared to the previous trading day's close of $58.08.

Discover Financial Services, a bank holding company, provides a range of financial products and services in the United States. The company operates in two segments, Direct Banking and Payment Services. Discover Financial Services has a market cap of $26.7 billion and is part of the financial sector. Shares are up 2.4% year-to-date as of the close of trading on Tuesday. Currently there are 13 analysts who rate Discover Financial Services a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Discover Financial Services as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Discover Financial Services Ratings Report now.

3x UPSIDE POTENTIAL: 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, Capital One Financial ( COF) is up $0.76 (1.0%) to $78.50 on average volume. Thus far, 1.8 million shares of Capital One Financial exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $77.93-$78.63 after having opened the day at $77.98 as compared to the previous trading day's close of $77.75.

Capital One Financial Corporation operates as the bank holding company for Capital One Bank (USA), National Association (COBNA); and Capital One, National Association (CONA), which provide various financial products and services in the United States, the United Kingdom, and Canada. Capital One Financial has a market cap of $44.1 billion and is part of the financial sector. Shares are up 0.8% year-to-date as of the close of trading on Tuesday. Currently there are 16 analysts who rate Capital One Financial a buy, no analysts rate it a sell, and 6 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, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Capital One Financial Ratings Report now.

3x UPSIDE POTENTIAL: 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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