Trade-Ideas LLC identified

Fidelity National Financial

(

FNF

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Fidelity National Financial as such a stock due to the following factors:

  • FNF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.5 million.
  • FNF has traded 531,191 shares today.
  • FNF traded in a range 207.3% of the normal price range with a price range of $1.08.
  • FNF traded above its daily resistance level (quality: 3 days, meaning that the stock is crossing a resistance level set by the last 3 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on FNF:

Fidelity National Financial, Inc., together with its subsidiaries, provides title insurance, and technology and transaction services to the real estate and mortgage industries in the United States. The stock currently has a dividend yield of 2.5%. Currently there are 4 analysts that rate Fidelity National Financial a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Fidelity National Financial has been 1.1 million shares per day over the past 30 days. Fidelity National Financial has a market cap of $11.5 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.88 and a short float of 1.9% with 4.34 days to cover. Shares are down 5.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Fidelity National Financial as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 170.58% to $92.00 million when compared to the same quarter last year. In addition, FIDELITY NATL FINL FNF GROUP has also vastly surpassed the industry average cash flow growth rate of -19.08%.
  • FIDELITY NATL FINL FNF GROUP's earnings per share declined by 13.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FIDELITY NATL FINL FNF GROUP increased its bottom line by earning $1.90 versus $1.04 in the prior year. This year, the market expects an improvement in earnings ($2.30 versus $1.90).
  • Despite the weak revenue results, FNF has outperformed against the industry average of 15.0%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.48, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Insurance industry average, but is less than that of the S&P 500. The net income has decreased by 13.9% when compared to the same quarter one year ago, dropping from $86.00 million to $74.00 million.

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