10 Bank Stocks Failing Our Test

by Louis Navellier | March 15, 2012 6:30 am

10 Bank Stocks Failing Our Test

The results of the Federal Reserve’s “stress tests” for banks[1] 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 Portfolio Grader[2] 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:GS[3]) 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. For more information, view my complete analysis of GS stock[4].

UBS (NYSE:UBS[5]) 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. For more information, view my complete analysis of UBS stock[6].

Credit Suisse Group (NYSE:CS[7]) 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. For more information, view my complete analysis of CS stock[8].

Deutsche Bank (NYSE:DB[9]) 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. For more information, view my complete analysis of DB stock[10].

Morgan Stanley (NYSE:MS[11]) 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. For more information, view my complete analysis of MS stock.[12]

Bank of New York Mellon Corp. (NYSE:BK[13]) 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. For more information, view my complete analysis of BK stock[14].

Charles Schwab Corp. (NYSE:SCHW[15]) 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. For more information, view my complete analysis of SCHW stock[16].

Ameriprise Financial (NYSE:AMP[17]) 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. For more information, view my complete analysis of AMP stock[18].

Northern Trust (NASDAQ:NTRS[19]) 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. For more information, view my complete analysis of NTRS stock[20].

TD Ameritrade (NASDAQ:AMTD[21]) 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. For more information, view my complete analysis of AMTD stock.[22]

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader[23] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

Endnotes:
  1. Federal Reserve’s “stress tests” for banks: http://investorplace.com/2012/03/federal-reserve-stress-tests-jpm-dividend-citi/
  2. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  3. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  4. For more information, view my complete analysis of GS stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=gs&submit=submit&type=site
  5. UBS: http://studio-5.financialcontent.com/investplace/quote?Symbol=UBS
  6. For more information, view my complete analysis of UBS stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ubs&submit=submit&type=site
  7. CS: http://studio-5.financialcontent.com/investplace/quote?Symbol=CS
  8. For more information, view my complete analysis of CS stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=cs&submit=submit&type=site
  9. DB: http://studio-5.financialcontent.com/investplace/quote?Symbol=DB
  10. For more information, view my complete analysis of DB stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=db&submit=submit&type=site
  11. MS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MS
  12. For more information, view my complete analysis of MS stock.: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ms&submit=submit&type=site
  13. BK: http://studio-5.financialcontent.com/investplace/quote?Symbol=BK
  14. For more information, view my complete analysis of BK stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=bk&submit=submit&type=site
  15. SCHW: http://studio-5.financialcontent.com/investplace/quote?Symbol=%20%20SCHW
  16. For more information, view my complete analysis of SCHW stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=schw&submit=submit&type=site
  17. AMP: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMP
  18. For more information, view my complete analysis of AMP stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=amp&submit=submit&type=site
  19. NTRS: http://studio-5.financialcontent.com/investplace/quote?Symbol=NTRS
  20. For more information, view my complete analysis of NTRS stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ntrs&submit=submit&type=site
  21. AMTD: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMTD
  22. For more information, view my complete analysis of AMTD stock.: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=amtd&submit=submit&type=site
  23. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/

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