3 Stocks Pushing The Banking Industry Lower

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The Banking industry as a whole closed the day up 0.4% versus the S&P 500, which was down 0.1%. Laggards within the Banking industry included Central Federal ( CFBK), down 4.3%, Citizens First ( CZFC), down 1.9%, Norwood Financial ( NWFL), down 5.3%, Landmark Bancorp ( LARK), down 2.4% and Anchor Bancorp ( ANCB), down 1.8%.

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

National Bank of Greece ( NBG) is one of the companies that pushed the Banking industry lower today. National Bank of Greece was down $0.12 (5.2%) to $2.08 on heavy volume. Throughout the day, 8,874,102 shares of National Bank of Greece exchanged hands as compared to its average daily volume of 4,152,500 shares. The stock ranged in price between $2.04-$2.09 after having opened the day at $2.06 as compared to the previous trading day's close of $2.20.

National Bank of Greece S.A., together with its subsidiaries, offers diversified financial services primarily in Greece. The company is involved in retail and commercial banking, investment management, investment banking, insurance, investment activities, and securities trading activities. National Bank of Greece has a market cap of $7.9 billion and is part of the financial sector. Shares are down 60.7% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates National Bank of Greece a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates National Bank of Greece as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on NBG go as follows:

  • Net operating cash flow has significantly decreased to -$7,775.80 million or 635.25% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for NATIONAL BANK OF GREECE is currently lower than what is desirable, coming in at 32.29%. It has decreased significantly from the same period last year. Despite the weak results of the gross profit margin, the net profit margin of 70.84% has significantly outperformed against 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 57.60%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 64.06% 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.
  • NATIONAL BANK OF GREECE 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NATIONAL BANK OF GREECE turned its bottom line around by earning $1.98 versus -$27.80 in the prior year. For the next year, the market is expecting a contraction of 92.9% in earnings ($0.14 versus $1.98).
  • NBG, with its decline in revenue, underperformed when compared the industry average of 0.1%. Since the same quarter one year prior, revenues fell by 11.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: National Bank of Greece 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.

At the close, Anchor Bancorp ( ANCB) was down $0.36 (1.8%) to $20.14 on average volume. Throughout the day, 2,067 shares of Anchor Bancorp exchanged hands as compared to its average daily volume of 2,000 shares. The stock ranged in price between $20.14-$20.55 after having opened the day at $20.14 as compared to the previous trading day's close of $20.50.

Anchor Bancorp operates as the bank holding company for Anchor Bank that provides various banking products and services primarily in Western Washington. It accepts deposit products comprising checking accounts, money market deposit accounts, savings accounts, and certificates of deposit. Anchor Bancorp has a market cap of $52.5 million and is part of the financial sector. Shares are up 12.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Anchor Bancorp a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Anchor Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins, solid stock price performance and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from TheStreet Ratings analysis on ANCB go as follows:

  • ANCHOR BANCORP/WA has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ANCHOR BANCORP/WA turned its bottom line around by earning $0.18 versus -$0.11 in the prior year. This year, the market expects an improvement in earnings ($3.61 versus $0.18).
  • 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 1041.7% when compared to the same quarter one year prior, rising from -$0.01 million to $0.11 million.
  • The gross profit margin for ANCHOR BANCORP/WA is currently very high, coming in at 83.70%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ANCB's net profit margin of 2.14% significantly trails the industry average.
  • This stock has managed to rise its share value by 21.17% over the past twelve months. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • ANCB, with its decline in revenue, slightly underperformed the industry average of 0.1%. Since the same quarter one year prior, revenues slightly dropped by 6.0%. 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: Anchor Bancorp 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.

Norwood Financial ( NWFL) was another company that pushed the Banking industry lower today. Norwood Financial was down $1.54 (5.3%) to $27.50 on light volume. Throughout the day, 352 shares of Norwood Financial exchanged hands as compared to its average daily volume of 1,000 shares. The stock ranged in price between $27.50-$27.50 after having opened the day at $27.50 as compared to the previous trading day's close of $29.04.

Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various financial services in Pennsylvania. Norwood Financial has a market cap of $106.0 million and is part of the financial sector. Shares are up 8.4% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Norwood Financial as a buy. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from TheStreet Ratings analysis on NWFL go as follows:

  • The gross profit margin for NORWOOD FINANCIAL CORP is currently very high, coming in at 85.29%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 25.81% trails the industry average.
  • NWFL, with its decline in revenue, slightly underperformed the industry average of 0.1%. Since the same quarter one year prior, revenues slightly dropped by 1.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, NORWOOD FINANCIAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • In its most recent trading session, NWFL has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.
  • NORWOOD FINANCIAL CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, NORWOOD FINANCIAL CORP reported lower earnings of $2.27 versus $2.33 in the prior year.

You can view the full analysis from the report here: Norwood Financial 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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