Trade-Ideas LLC identified

First Horizon National

(

FHN

) 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 First Horizon National as such a stock due to the following factors:

  • FHN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.4 million.
  • FHN has traded 1.5 million shares today.
  • FHN traded in a range 223.1% of the normal price range with a price range of $0.64.
  • FHN traded above its daily resistance level (quality: 19 days, meaning that the stock is crossing a resistance level set by the last 19 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 FHN:

First Horizon National Corporation operates as the bank holding company for First Tennessee Bank National Association that provides various financial services in the United States and internationally. The stock currently has a dividend yield of 2%. FHN has a PE ratio of 16. Currently there are 2 analysts that rate First Horizon National a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for First Horizon National has been 2.0 million shares per day over the past 30 days. First Horizon has a market cap of $3.2 billion and is part of the financial sector and banking industry. The stock has a beta of 0.97 and a short float of 5.1% with 7.84 days to cover. Shares are down 6.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates First Horizon National as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • FHN's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 6.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 165.7% when compared to the same quarter one year prior, rising from -$75.16 million to $49.36 million.
  • Net operating cash flow has increased to -$111.02 million or 21.58% when compared to the same quarter last year. In addition, FIRST HORIZON NATIONAL CORP has also vastly surpassed the industry average cash flow growth rate of -114.97%.
  • The gross profit margin for FIRST HORIZON NATIONAL CORP is currently very high, coming in at 92.50%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.05% trails the industry average.
  • FIRST HORIZON NATIONAL CORP reported significant earnings per share improvement 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, FIRST HORIZON NATIONAL CORP reported lower earnings of $0.34 versus $0.91 in the prior year. This year, the market expects an improvement in earnings ($0.92 versus $0.34).

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