3 Stocks Pushing The Financial Sector Lower

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The Financial sector as a whole closed the day down 0.1% versus the S&P 500, which was down 0.1%. Laggards within the Financial sector included InnSuites Hospitality ( IHT), down 5.3%, RENN Global Entrepreneurs Fund ( RCG), down 6.2%, First Financial Service ( FFKY), down 3.2%, IFM Investments ( CTC), down 6.1% and Colony Bankcorp ( CBAN), down 3.4%.

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

Colony Bankcorp ( CBAN) is one of the companies that pushed the Financial sector lower today. Colony Bankcorp was down $0.21 (3.4%) to $6.02 on average volume. Throughout the day, 4,768 shares of Colony Bankcorp exchanged hands as compared to its average daily volume of 3,300 shares. The stock ranged in price between $6.00-$6.12 after having opened the day at $6.00 as compared to the previous trading day's close of $6.23.

Colony Bankcorp, Inc. operates as a bank holding company for Colony Bank that provides banking services to its retail and commercial customers. It accepts various deposit products, including demand, savings, and time deposits. Colony Bankcorp has a market cap of $50.7 million and is part of the financial services industry. Shares are down 1.4% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Colony Bankcorp as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on CBAN go as follows:

  • COLONY BANKCORP INC has improved earnings per share by 42.9% 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, COLONY BANKCORP INC increased its bottom line by earning $0.37 versus $0.14 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 55.5% when compared to the same quarter one year prior, rising from $0.94 million to $1.46 million.
  • The gross profit margin for COLONY BANKCORP INC is currently very high, coming in at 83.97%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, CBAN's net profit margin of 11.19% significantly trails the industry average.
  • CBAN, with its decline in revenue, slightly underperformed the industry average of 2.2%. Since the same quarter one year prior, revenues slightly dropped by 2.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here: Colony Bankcorp Ratings Report

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At the close, IFM Investments ( CTC) was down $0.06 (6.1%) to $0.92 on average volume. Throughout the day, 16,079 shares of IFM Investments exchanged hands as compared to its average daily volume of 18,900 shares. The stock ranged in price between $0.89-$0.99 after having opened the day at $0.98 as compared to the previous trading day's close of $0.98.

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 Tuesday.

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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 Financial Service ( FFKY) was another company that pushed the Financial sector lower today. First Financial Service was down $0.12 (3.2%) to $3.58 on heavy volume. Throughout the day, 15,849 shares of First Financial Service exchanged hands as compared to its average daily volume of 4,300 shares. The stock ranged in price between $3.51-$3.65 after having opened the day at $3.65 as compared to the previous trading day's close of $3.70.

First Financial Service Corporation operates as the bank holding company for First Federal Savings Bank of Elizabethtown that provides various personal and corporate banking services and personal investment financial counseling services. First Financial Service has a market cap of $19.0 million and is part of the financial services industry. Shares are down 24.6% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate First Financial Service a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates First Financial Service as a sell. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.

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Highlights from TheStreet Ratings analysis on FFKY go as follows:

  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, FIRST FINANCIAL SERVICE CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • FIRST FINANCIAL SERVICE CORP 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, FIRST FINANCIAL SERVICE CORP continued to lose money by earning -$0.06 versus -$1.98 in the prior year. For the next year, the market is expecting a contraction of 400.0% in earnings (-$0.30 versus -$0.06).
  • FFKY, with its decline in revenue, underperformed when compared the industry average of 2.2%. Since the same quarter one year prior, revenues fell by 14.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for FIRST FINANCIAL SERVICE CORP is currently very high, coming in at 98.04%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, FFKY's net profit margin of 3.08% significantly trails the industry average.
  • Net operating cash flow has significantly increased by 91.26% to -$0.22 million when compared to the same quarter last year. In addition, FIRST FINANCIAL SERVICE CORP has also vastly surpassed the industry average cash flow growth rate of -45.55%.

You can view the full analysis from the report here: First Financial Service 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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