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6 Financial Stocks to Dump Now

You won't be able to bank on these companies

   

Ah, the financial industry. I know it too well. I know it so well, in fact, that I try to warn investors from placing banks and other financial stocks in their portfolios any chance I get — and today is no exception. Despite the recent market upswing across the board — financial stocks included — I believe it is still too early to have faith in this particular sector. If you’re holding onto the following downtrodden stocks, I suggest you let them go.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, six financial stocks to sell.

Here they are, in alphabetical order. 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:AMP) provides its customer with financial planning and financial products and services. In the last year, AMP stock is down 11%, compared to a gain of 6% for the Dow Jones in the same time. AMP stock gets a “D” for sales growth, a “D” for earnings growth, a “D” for earnings momentum, an “F” for its ability to exceed the consensus earnings estimates on Wall Street and a “D” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of AMP stock.

Bank of New York Mellon (NYSE:BK) is a global financial services company that owns the following banks: The Bank of New York Mellon and BNY Mellon, National Association. BK stock is down 34% in the last 12 months. BK stock gets a “D” for its ability to exceed the consensus earnings estimates on Wall Street in my Portfolio Grader tool. For more information, view my complete analysis of BK stock.

Charles Schwab (NYSE:SCHW) is a savings and loan company that has watched its stock drop 31% in the last year. SCHW gets a “D” for its ability to exceed the consensus earnings estimates on Wall Street and a “D” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool — despite being able to meet the Street’s most recent earnings expectations. For more information, view my complete analysis of SCHW stock.

Deutsche Bank (NYSE:DB) is a global investment bank based in Germany. Since last January, DB stock has dropped 28% compared to gains by the broader markets. DB stock gets an “F” for sales growth, an “F” for its ability to exceed the consensus earnings estimates on Wall Street and a “D” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of DB stock.

Goldman Sachs Group (NYSE:GS) is also based in New York and is a bank and financial holding company. GS stock is down more than 35% in the past 12 months. GS stock gets an “F” for sales growth, a “D” for operating margin growth, an “F” for earnings momentum, an “F” for the magnitude in which earnings projections have increased over the past month and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of GS stock.

UBS (NYSE:UBS) is known for providing wealth management, asset management and investment banking services. UBS rounds out the list with a drop of 23% in the last year. UBS stock gets an “F” for sales growth, a “D” for operating margin growth, a “D” for earnings growth, a “D” for earnings momentum and an “F” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of UBS stock.

Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock rating tool that measures both quantitative buying pressure and eight fundamental factors.


Article printed from InvestorPlace Media, http://investorplace.com/2012/01/financial-stocks-to-dump-amp-bk-schw-db-gs-ubs/.

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