The financial sector has been on a tear in 2012, but their are a number of factors weighing on possible future earnings:
- regulations, including the so-called “Volcker rule” that bans proprietary trading and an increase in capital requirements,
- the low interest rate environment hurting the spread on loans, and
- high unemployment limiting the number of qualified borrowers.
While some banks have indeed rallied strongly, a number have been left behind – and could slip further due to the aforementioned concerns.
I watch more than 5,000 publicly traded companies with my tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’m recommending nine 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.”
Ameriprise Financial (NYSE:) is involved with financial planning, wealth management, retirement, asset management, annuities and insurance. In the last 12 months, AMP stock has dipped 5%. Ameriprise stock gets a “D” grade for sales growth, a “D” grade for earnings momentum, and a “D” grade for the magnitude in which earnings projections have increased over the past months. .
Bank of New York Mellon (NYSE:) is a global financial services company that has posted a loss of 19% in the last 12 months. Bank of New York Mellon stock gets an “F” grade for sales growth, and a “D” grade for earnings growth in my Portfolio Grader stock. .
Charles Schwab (NYSE:) is a savings and loan holding company that has reported a loss of 18% in the last year. 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. .
Credit Suisse (NYSE:) is a global financial services company that has watched its stock value decrease 32% 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. .
Goldman Sachs (NYSE:
) provides financial services to corporations, financial institutions, governments and high-net-worth individuals. GS stock has been far outpaced by the broader markets, down 20% in the last year. Goldman Sachs 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 equit. .
Morgan Stanley (NYSE:) provides financial services to corporations, governments, financial institutions and individuals. In the last 12 months, Morgan Stanley stock has dropped 24%. 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. .
Nomura Holdings Inc. (NYSE:) is primarily focused on the securities business. Since last March, NMR stock is down 17%, compared to a gain of 8% for the Dow Jones in the same time. Nomura stock gets an “F” grade for operating margin growth, a “D” grade for cash flow and a “D” grade for return on equity in my Portfolio Grader tool. .
Northern Trust (NASDAQ:) provides its customers with asset servicing, fund administration, asset management, fiduciary and banking solutions. Northern Trust is down 6% in the last year. NTRS stock gets 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 on Wall Street. .
UBS (NYSE:) offers wealth management, asset management and investment banking services. Since last March, UBS has posted a loss of 21%. 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, 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. .
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
