9 Financial Stocks Ready to Sell

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 Portfolio Grader 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:AMP) 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. For more information, view my complete analysis of AMP stock.

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

Charles Schwab (NYSE:SCHW) 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. For more information, view my complete analysis of SCHW stock.

Credit Suisse (NYSE:CS) 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. For more information, view my complete analysis of CS stock.