3 Stocks Dragging In The Financial Services Industry

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 41 points (0.2%) at 17,110 as of Friday, Sept. 5, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,666 issues advancing vs. 1,285 declining with 190 unchanged.

The Financial Services industry currently is unchanged today versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Orix ( IX), down 1.8%, and KKR ( KKR), down 0.8%. A company within the industry that increased today was HD Supply Holdings ( HDS), up 1.0%.

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 $0.47 (-1.0%) to $48.62 on light volume. Thus far, 222,142 shares of Legg Mason exchanged hands as compared to its average daily volume of 711,100 shares. The stock has ranged in price between $48.44-$49.08 after having opened the day at $48.96 as compared to the previous trading day's close of $49.09.

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 $5.7 billion and is part of the financial sector. Shares are up 12.9% 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 4 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 revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Legg Mason 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.

2. As of noon trading, Navient ( NAVI) is down $0.18 (-1.0%) to $17.78 on light volume. Thus far, 607,652 shares of Navient exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $17.66-$18.05 after having opened the day at $17.90 as compared to the previous trading day's close of $17.96.

Navient Corporation provides financial products and services focusing on the education sector. The company's Consumer Lending segment originates, acquires, finances, and services private education loans. Navient has a market cap of $7.5 billion and is part of the financial sector. Shares are unchanged year-to-date as of the close of trading on Thursday. Currently there are 3 analysts that rate Navient a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Navient as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Get the full Navient 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, Morgan Stanley ( MS) is down $0.45 (-1.3%) to $34.25 on average volume. Thus far, 5.3 million shares of Morgan Stanley exchanged hands as compared to its average daily volume of 8.2 million shares. The stock has ranged in price between $33.94-$34.49 after having opened the day at $34.40 as compared to the previous trading day's close of $34.70.

Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. Morgan Stanley has a market cap of $67.9 billion and is part of the financial sector. Shares are up 10.7% year-to-date as of the close of trading on Thursday. Currently there are 7 analysts that rate Morgan Stanley a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Morgan Stanley as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins. Get the full Morgan Stanley 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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