The results of the Federal Reserve’s “stress tests” for banks show a number of financial stocks on the mend — but also some stocks that aren’t winning any friends over at the central bank.
I watch more than 5,000 publicly traded companies with my tool, ranking companies by a number of fundamental and quantitative measures. After performing my own “stress tests” this week, I’ve identified 10 financial stocks to sell.
Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.” Here they are:
Goldman Sachs Group Inc. (NYSE:) is a bank holding and a financial holding company based in New York City. GS stock has posted a loss of 22% in the last year, compared to a gain of 9% for the Dow Jones in the same time. GS stock gets an “F” grade for sales growth, a “D” grade for operating margin growth, a “D” grade for earnings growth, a “D” grade for earnings momentum, a “D” grade for the magnitude in which earnings projections have increased over the past months, and a “D” grade for return on equity. .
UBS (NYSE:) offers wealth management, asset management and investment banking services. In the last year, UBS is down 24%. UBS stock gets an “F” grade for sales growth, a “D” grade for operating margin growth, a “D” grade for earnings growth, a “D” grade for earnings momentum, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, and a “D” grade for the magnitude in which earnings projections have increased over the past months. .
Credit Suisse Group (NYSE:) is a global financial services company that posted a significant loss of 34% in the last 12 months. Credit Suisse stock gets an “F” grade for sales growth, a “D” grade for operating margin growth, a “D” grade for earnings growth, an “F” grade for earnings momentum, a “D” grade for the magnitude in which earnings projections have increased over the past months, and a “D” grade for return on equity. .
Deutsche Bank (NYSE:) is a global investment bank that offers various investment, financial and related products and services. Since last March, DB stock is down 18%. DB stock gets an “F” grade for sales growth, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, and a “D” grade for the magnitude in which earnings projections have increased over the past months. .
Morgan Stanley (NYSE:) provides financial services and products to corporations, governments, financial institutions and individuals. MS stock has slid 33% in 2011. MS stock gets a “D” grade for sales growth, a “D” grade for operating margin growth, an “F” grade for earnings growth, a “D” grade for the magnitude in which earnings projections have increased over the past months, and a “D” grade for return on equity.
Bank of New York Mellon Corp. (NYSE:) is another global financial services company facing a 20% loss in the last year. Mellon stock gets an “F” grade for sales growth, a “D” grade for earnings growth, and a “D” grade for the magnitude in which earnings projections have increased over the past months. .
Charles Schwab Corp. (NYSE:) is involved with securities brokerage, banking and related financial services. While the Dow Jones has posted a 9% gain in the last year, SCHW is down 22%. Schwab stock gets a “D” grade for sales growth, a “D” grade for earnings momentum, a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street, and a “D” grade for the magnitude in which earnings projections have increased over the past months. .
Ameriprise Financial (NYSE:) provides its customers with financial planning, wealth management, retirement, asset management, annuities and insurance. Since last March, AMP stock has dipped 7%. Ameriprise gets a “D” grade for sales growth, a “D” grade for earnings growth, a “D” grade for earnings momentum, and a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street in my Portfolio Grader tool. .
Northern Trust (NASDAQ:) is known for its asset servicing, fund administration, asset management, fiduciary and banking solutions. The broader markets may be up, but NTRS is down 11% since last year. Northern Trust gets a “D” grade for sales growth, a “D” grade for operating margin growth, a “D” grade for earnings growth, and a “D” grade for its ability to exceed the consensus earnings estimates. .
TD Ameritrade (NASDAQ:) works with retail investors, traders and independent registered investment advisers. Ameritrade rounds out the list with a loss of 9% in the last year. AMTD stock gets a “D” grade for sales growth.
Get more analysis of these picks and other publicly-traded stocks with 91¶¶Òõ’s tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.
