3 Stocks Pulling The Financial Services Industry Downward

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 21 points (-0.1%) at 16,894 as of Friday, July 11, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,379 issues advancing vs. 1,581 declining with 154 unchanged.

The Financial Services industry currently sits up 0.1% versus the S&P 500, which is down 0.1%. A company within the industry that fell today was Orix ( IX), up 1.8%. Top gainers within the industry include Altisource Asset Management ( AAMC), up 5.0%, AllianceBernstein Holding L.P ( AB), up 2.8%, Cohen & Steers ( CNS), up 2.7%, Western Union ( WU), up 1.8% and Franklin Resources ( BEN), up 0.8%.

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

3. Legg Mason ( LM) is one of the companies pushing the Financial Services industry lower today. As of noon trading, Legg Mason is down $0.50 (-1.0%) to $49.56 on average volume. Thus far, 541,822 shares of Legg Mason exchanged hands as compared to its average daily volume of 832,700 shares. The stock has ranged in price between $49.06-$50.16 after having opened the day at $50.06 as compared to the previous trading day's close of $50.05.

Legg Mason Inc. is a publicly owned asset management holding company. The firm through its subsidiaries provides investment management and related services to institutional and individual clients, company-sponsored mutual funds and other pooled investment vehicles. Legg Mason Inc. Legg Mason has a market cap of $5.9 billion and is part of the financial sector. Shares are up 15.1% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts that rate Legg Mason a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Legg Mason as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Legg Mason Ratings Report now.

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2. As of noon trading, CIT Group ( CIT) is down $0.45 (-1.0%) to $44.05 on light volume. Thus far, 436,054 shares of CIT Group exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $43.88-$44.42 after having opened the day at $44.27 as compared to the previous trading day's close of $44.50.

CIT Group Inc. operates as the holding company for CIT bank that provides commercial financing and leasing products; and a suite of savings options in the United States. CIT Group has a market cap of $8.7 billion and is part of the financial sector. Shares are down 14.6% year-to-date as of the close of trading on Thursday. Currently there are 8 analysts that rate CIT Group a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates CIT Group as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Get the full CIT Group Ratings Report now.

STOCKS TO BUY: 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, Bank of New York Mellon ( BK) is down $0.25 (-0.7%) to $37.47 on average volume. Thus far, 2.0 million shares of Bank of New York Mellon exchanged hands as compared to its average daily volume of 4.9 million shares. The stock has ranged in price between $37.40-$37.65 after having opened the day at $37.59 as compared to the previous trading day's close of $37.72.

The Bank of New York Mellon Corporation provides various financial products and services in the United States and internationally. Its Investment Management segment provides institutional, intermediary, retirement and retail investment management, distribution, and related services. Bank of New York Mellon has a market cap of $42.9 billion and is part of the financial sector. Shares are up 8.0% year-to-date as of the close of trading on Thursday. Currently there are 5 analysts that rate Bank of New York Mellon a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Bank of New York Mellon as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Bank of New York Mellon Ratings Report now.

STOCKS TO BUY: 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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