5 Financial Stocks Investors are Buying in a Down Market

Through most of the trading day on Tuesday, September 6, 2011, these stocks are helping the Financial (NYSE:XLF) sector. Big banks are getting hit hard as the robo-signing and mortgage securities fraud cases continue to plague the U.S. banks. The huge selloff in European banks are also spilling over to the U.S. today. Long time Wall St. Cheat Sheet readers know to watch stock prices because Technicals on the Stock Chart are Strong’ is one of the ‘T’s in our CHEAT SHEET investing framework.

Fifth Third Bancorp (NASDAQ:FITB) is among the top price gainers in the sector. Its shares are trading at $9.75, up 13 cents (+1.4%) from the previous close of $9.62. Fifth Third Bancorp is a diversified financial services company which conducts its lending, deposit gathering, transaction processing and service advisory activities through its subsidiaries.

Stock Price Performance: From July 8, 2011, to September 2, 2011, the stock price had fallen $2.94 (-23.4%) from $12.56 to $9.62. The stock price saw one of its best stretches over the last year between June 23, 2011 and July 1, 2011 when shares rose for seven straight trading days, rising 7.8% (+94 cents). It saw one of its worst periods between February 14, 2011 and February 24, 2011 when shares fell for eight straight trading days, falling 7.8% (-$1.20).

RenaissanceRe Holdings Ltd. (NYSE:RNR) is among the sector price gainers, as its shares are trading at $64.25, up 34 cents (+0.4%) from the previous close of $63.98. Renaissance Re Holdings, Ltd is the provider of reinsurance and insurance coverages and related services. Its business consists of two segments, Reinsurance and Individual Risk.

Stock Price Performance: From June 9, 2011, to September 2, 2011, the stock price had fallen $7.35 (-10.3%) from $71.33 to $63.98. The stock price saw one of its best stretches over the last year between November 30, 2010 and December 13, 2010 when shares rose for 10 straight trading days, rising 5.9% (+$3.54). It saw one of its worst periods between July 26, 2011 and August 8, 2011 when shares fell for 10 straight trading days, falling 16.1% (-$11.57).

Chimera Investment Corporation (NYSE:CIM) is among the top price gainers in the sector. Its shares are trading at $2.90, up one cent (+0.3%) from the previous close of $2.89. Chimera Investment Corporation is a specialty finance company that invests in residential mortgage backed securities, or RMBS, residential mortgage loans, real estate-related securities and various other asset classes.

Stock Price Performance: From July 8, 2011, to September 2, 2011, the stock price had fallen 63 cents (-17.9%) from $3.52 to $2.89. It saw one of its worst periods between July 8, 2011 and July 18, 2011 when shares fell for seven straight trading days, falling 9.7% (-34 cents). The stock price saw one of its best stretches over the last year between October 13, 2010 and October 21, 2010 when shares rose for seven straight trading days, rising 5.5% (+20 cents).

Validus Holdings, Ltd. (NYSE:VR) is among the sector price gainers, as its shares are trading at $25.17, up 33 cents (+1.6%) from the previous close of $24.78. Validus Holdings, Inc., through its subsidiaries, provides reinsurance and insurance coverage in the property, marine, and specialty lines markets worldwide.

Stock Price Performance: From July 8, 2011, to September 2, 2011, the stock price had fallen $6.48 (-20.7%) from $31.26 to $24.78. The stock price saw one of its best stretches over the last year between October 7, 2010 and October 18, 2010 when shares rose for eight straight trading days, rising 6.2% (+$1.63). It saw one of its worst periods between July 26, 2011 and August 8, 2011 when shares fell for 10 straight trading days, falling 14.5% (-$4).

CapitalSource, Inc. (NYSE:CSE) is among the top price gainers in the sector. Its shares are trading at $6.20, up 9 cents (+1.1%) from the previous close of $6.13. CapitalSource Inc. is a commercial lender which primarily, through our wholly owned subsidiary, CapitalSource Bank, provides financial products to middle market businesses and provides depository products and services in southern and central California.

Stock Price Performance: From August 5, 2011, to September 2, 2011, the stock price had risen 58 cents (10.5%) from $5.55 to $6.13. The stock price saw one of its best stretches over the last year between October 28, 2010 and November 5, 2010 when shares rose for seven straight trading days, rising 13.2% (+75 cents). It saw one of its worst periods between April 6, 2011 and April 14, 2011 when shares fell for seven straight trading days, falling 3.8% (-27 cents).

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