3 Stocks Pushing The Banking Industry Lower

The Banking industry as a whole closed the day down 1.4% versus the S&P 500, which was down 1.3%. Laggards within the Banking industry included OptimumBank Holdings ( OPHC), down 6.9%, QC Holdings ( QCCO), down 3.9%, Stewardship Financial ( SSFN), down 3.7%, Elmira Savings Bank Elmira NY ( ESBK), down 3.4% and HMN Financial ( HMNF), down 2.6%.

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

Mitsubishi UFJ Financial Group ( MTU) is one of the companies that pushed the Banking industry lower today. Mitsubishi UFJ Financial Group was down $0.25 (3.6%) to $6.74 on average volume. Throughout the day, 1,931,834 shares of Mitsubishi UFJ Financial Group exchanged hands as compared to its average daily volume of 1,476,700 shares. The stock ranged in price between $6.74-$6.84 after having opened the day at $6.84 as compared to the previous trading day's close of $6.99.

Mitsubishi UFJ Financial Group, Inc., through its subsidiaries, provides financial services in Japan and internationally. Mitsubishi UFJ Financial Group has a market cap of $97.8 billion and is part of the financial sector. Shares are up 26.4% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Mitsubishi UFJ Financial Group a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on MTU go as follows:

  • The gross profit margin for MITSUBISHI UFJ FINANCIAL GRP is currently very high, coming in at 89.37%. 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 18.41% trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Commercial Banks industry average, but is greater than that of the S&P 500. The net income has decreased by 4.2% when compared to the same quarter one year ago, dropping from $2,374.52 million to $2,274.87 million.
  • 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. When compared to other companies in the Commercial Banks industry and the overall market, MITSUBISHI UFJ FINANCIAL GRP's return on equity is below that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Mitsubishi UFJ Financial Group Ratings Report

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At the close, HMN Financial ( HMNF) was down $0.30 (2.6%) to $11.10 on light volume. Throughout the day, 1,320 shares of HMN Financial exchanged hands as compared to its average daily volume of 2,200 shares. The stock ranged in price between $11.10-$11.35 after having opened the day at $11.35 as compared to the previous trading day's close of $11.40.

HMN Financial, Inc. operates as the holding company for Home Federal Savings Bank that provides community banking products and services in Minnesota, Iowa, and Wisconsin. HMN Financial has a market cap of $51.1 million and is part of the financial sector. Shares are down 8.1% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates HMN Financial as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on HMNF go as follows:

  • The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for HMN FINANCIAL INC is currently very high, coming in at 97.00%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, HMNF's net profit margin of 8.43% is significantly lower than the industry average.
  • 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 Thrifts & Mortgage Finance industry. The net income has significantly decreased by 76.9% when compared to the same quarter one year ago, falling from $2.53 million to $0.59 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, HMN FINANCIAL INC's return on equity is below that of both the industry average and the S&P 500.

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

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QC Holdings ( QCCO) was another company that pushed the Banking industry lower today. QC Holdings was down $0.07 (3.9%) to $1.86 on light volume. Throughout the day, 5,651 shares of QC Holdings exchanged hands as compared to its average daily volume of 8,200 shares. The stock ranged in price between $1.83-$1.91 after having opened the day at $1.89 as compared to the previous trading day's close of $1.93.

QC Holdings, Inc. and its subsidiaries provide various financial services. The company operates through three segments: Branch Lending, Centralized Lending, and E-Lending. QC Holdings has a market cap of $34.1 million and is part of the financial sector. Shares are up 17.7% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates QC Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income and poor profit margins.

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Highlights from TheStreet Ratings analysis on QCCO go as follows:

  • The share price of QC HOLDINGS INC has not done very well: it is down 23.42% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • 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 Consumer Finance industry. The net income has significantly decreased by 627.4% when compared to the same quarter one year ago, falling from $0.19 million to -$0.98 million.
  • The gross profit margin for QC HOLDINGS INC is rather low; currently it is at 17.57%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.06% is significantly below that of the industry average.
  • 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 Consumer Finance industry and the overall market, QC HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • QC HOLDINGS INC 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 not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, QC HOLDINGS INC turned its bottom line around by earning $0.29 versus -$0.56 in the prior year.

You can view the full analysis from the report here: QC Holdings Ratings Report

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