9 Financial Stocks Ready to Sell

These financial flops are blinking red for sell

9 Financial Stocks Ready to Sell

closed bank e1311027569279 9 Financial Stocks Ready to SellThe 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.

Goldman Sachs (NYSE:GS) 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. For more information, view my complete analysis of GS stock.

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

Nomura Holdings Inc. (NYSE:NMR) 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. For more information, view my complete analysis of NMR stock.

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

UBS (NYSE:UBS) 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. 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/2012/03/9-financial-stocks-ready-to-sell/.

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