3 Stocks Advancing The Financial Sector

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All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 30 points (0.2%) at 17,107 as of Tuesday, Aug. 26, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,006 issues advancing vs. 1,020 declining with 179 unchanged.

The Financial sector as a whole closed the day up 0.3% versus the S&P 500, which was up 0.1%. Top gainers within the Financial sector included Valley Financial ( VYFC), up 4.9%, Porter Bancorp ( PBIB), up 2.1%, Vestin Realty Mortgage I ( VRTA), up 2.0%, Mackinac Financial ( MFNC), up 4.5% and Oconee Federal Financial ( OFED), up 1.9%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today:

Mackinac Financial ( MFNC) is one of the companies that pushed the Financial sector higher today. Mackinac Financial was up $0.49 (4.5%) to $11.49 on heavy volume. Throughout the day, 7,319 shares of Mackinac Financial exchanged hands as compared to its average daily volume of 1,700 shares. The stock ranged in a price between $11.38-$11.68 after having opened the day at $11.38 as compared to the previous trading day's close of $11.00.

Mackinac Financial Corporation operates as the holding company for mBank that provides commercial and retail banking products and services. Mackinac Financial has a market cap of $65.2 million and is part of the insurance industry. Shares are up 11.1% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Mackinac Financial a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Mackinac Financial as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and unimpressive growth in net income.

Highlights from TheStreet Ratings analysis on MFNC go as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.7%. Since the same quarter one year prior, revenues slightly dropped by 3.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • MACKINAC FINANCIAL CORP's earnings per share declined by 31.8% in the most recent quarter compared to 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, MACKINAC FINANCIAL CORP reported lower earnings of $1.00 versus $1.66 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 Commercial Banks industry. The net income has significantly decreased by 36.0% when compared to the same quarter one year ago, falling from $1.26 million to $0.81 million.

You can view the full analysis from the report here: Mackinac Financial Ratings Report

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