3 Stocks Pushing The Financial Services Industry Lower

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The Financial Services industry as a whole closed the day up 0.1% versus the S&P 500, which was unchanged. Laggards within the Financial Services industry included Nuveen MO Premium Income Muni Fund ( NOM), down 2.0%, Rand Capital ( RAND), down 2.5%, Security National Financial ( SNFCA), down 2.0%, First Marblehead ( FMD), down 2.9% and Sorrento Therapeutics ( SRNE), down 3.7%.

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

Noah Holdings ( NOAH) is one of the companies that pushed the Financial Services industry lower today. Noah Holdings was down $0.35 (1.8%) to $18.99 on average volume. Throughout the day, 295,400 shares of Noah Holdings exchanged hands as compared to its average daily volume of 317,000 shares. The stock ranged in price between $18.84-$19.50 after having opened the day at $19.43 as compared to the previous trading day's close of $19.34.

Noah Holdings Limited, through its subsidiaries, operates as a wealth management service provider with focus on distributing wealth management products in the People's Republic of China. Noah Holdings has a market cap of $1.0 billion and is part of the financial sector. Shares are up 7.4% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Noah Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Noah Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on NOAH go as follows:

  • NOAH's very impressive revenue growth greatly exceeded the industry average of 1.0%. Since the same quarter one year prior, revenues leaped by 61.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Capital Markets industry and the overall market, NOAH HOLDINGS LTD -ADR's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • NOAH HOLDINGS LTD -ADR reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NOAH HOLDINGS LTD -ADR increased its bottom line by earning $0.93 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($1.31 versus $0.93).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 58.3% when compared to the same quarter one year prior, rising from $14.45 million to $22.87 million.
  • The gross profit margin for NOAH HOLDINGS LTD -ADR is currently very high, coming in at 74.85%. Regardless of NOAH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NOAH's net profit margin of 32.01% compares favorably to the industry average.

You can view the full analysis from the report here: Noah Holdings 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, Sorrento Therapeutics ( SRNE) was down $0.15 (3.7%) to $3.90 on light volume. Throughout the day, 63,202 shares of Sorrento Therapeutics exchanged hands as compared to its average daily volume of 96,000 shares. The stock ranged in price between $3.84-$4.30 after having opened the day at $4.10 as compared to the previous trading day's close of $4.05.

Sorrento Therapeutics, Inc., a clinical stage biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary drug therapeutics for addressing unmet medical needs in the United States, Europe, and internationally. Sorrento Therapeutics has a market cap of $112.5 million and is part of the financial sector. Shares are down 52.0% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Sorrento Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Sorrento Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on SRNE go as follows:

  • 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 Biotechnology industry. The net income has significantly decreased by 78.5% when compared to the same quarter one year ago, falling from -$4.74 million to -$8.45 million.
  • Net operating cash flow has significantly decreased to -$6.39 million or 67.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 55.44%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 32.00% 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.
  • SORRENTO THERAPEUTICS INC's earnings per share declined by 32.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SORRENTO THERAPEUTICS INC reported poor results of -$1.30 versus $0.00 in the prior year. This year, the market expects an improvement in earnings (-$1.29 versus -$1.30).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, SORRENTO THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Sorrento Therapeutics 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.

First Marblehead ( FMD) was another company that pushed the Financial Services industry lower today. First Marblehead was down $0.05 (2.9%) to $1.66 on light volume. Throughout the day, 24,660 shares of First Marblehead exchanged hands as compared to its average daily volume of 39,900 shares. The stock ranged in price between $1.65-$1.72 after having opened the day at $1.67 as compared to the previous trading day's close of $1.71.

First Marblehead has a market cap of $20.9 million and is part of the financial sector. Shares are down 76.9% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate First Marblehead a buy, no analysts rate it a sell, and 1 rates it a hold.

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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