3 Stocks Raising The Financial Services 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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 37 points (0.2%) at 16,943 as of Wednesday, July 9, 2014, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,468 issues advancing vs. 1,471 declining with 161 unchanged.

The Financial Services industry currently sits down 0.1% versus the S&P 500, which is up 0.3%. Top gainers within the industry include Janus Capital Group ( JNS), up 2.1%, American Capital ( ACAS), up 1.2%, Lazard ( LAZ), up 0.7% and MasterCard ( MA), up 0.6%. On the negative front, top decliners within the industry include Apollo Global Management ( APO), down 3.6%, PHH ( PHH), down 3.5%, Waddell & Reed Financial ( WDR), down 3.1%, Nomura Holdings ( NMR), down 1.4% and LPL Financial Holdings ( LPLA), down 1.2%.

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

3. Franklin Resources ( BEN) is one of the companies pushing the Financial Services industry higher today. As of noon trading, Franklin Resources is up $0.45 (0.8%) to $57.53 on average volume. Thus far, 708,416 shares of Franklin Resources exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $57.41-$58.13 after having opened the day at $57.43 as compared to the previous trading day's close of $57.08.

Franklin Resources Inc. is a publicly owned asset management holding company. The firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It manages, through its subsidiary, separate client-focused equity, fixed income, and balanced portfolios. Franklin Resources has a market cap of $36.2 billion and is part of the financial sector. Shares are down 1.1% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts who rate Franklin Resources a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Franklin Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Franklin Resources 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 $0.42 (0.7%) to $62.63 on light volume. Thus far, 810,926 shares of Discover Financial Services exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $62.40-$63.03 after having opened the day at $62.41 as compared to the previous trading day's close of $62.21.

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 $29.4 billion and is part of the financial sector. Shares are up 11.2% year-to-date as of the close of trading on Tuesday. Currently there are 11 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 $0.73 (0.9%) to $83.96 on average volume. Thus far, 1.3 million shares of Capital One Financial exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $83.68-$84.95 after having opened the day at $84.15 as compared to the previous trading day's close of $83.23.

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 $47.8 billion and is part of the financial sector. Shares are up 8.6% year-to-date as of the close of trading on Tuesday. Currently there are 15 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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