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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

CNO Financial Group

(

CNO

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified CNO Financial Group as such a stock due to the following factors:

  • CNO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $71.3 million.
  • CNO is making at least a new 3-day high.
  • CNO has a PE ratio of 73.9.
  • CNO is mentioned 1.42 times per day on StockTwits.
  • CNO has not yet been mentioned on StockTwits today.
  • CNO is currently in the upper 20% of its 1-year range.
  • CNO is in the upper 35% of its 20-day range.
  • CNO is in the upper 45% of its 5-day range.
  • CNO is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on CNO:

CNO Financial Group, Inc., through its subsidiaries, develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The stock currently has a dividend yield of 1.4%. CNO has a PE ratio of 73.9. Currently there are 2 analysts that rate CNO Financial Group a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for CNO Financial Group has been 1.7 million shares per day over the past 30 days. CNO Financial Group has a market cap of $3.5 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.66 and a short float of 3% with 1.47 days to cover. Shares are up 1.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CNO Financial Group as a

buy

. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • CNO FINANCIAL GROUP INC's earnings per share declined by 12.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CNO FINANCIAL GROUP INC reported lower earnings of $0.27 versus $2.09 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus $0.27).
  • CNO, with its decline in revenue, underperformed when compared the industry average of 3.0%. Since the same quarter one year prior, revenues fell by 13.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • CNO's debt-to-equity ratio of 0.77 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
  • The change in net income from the same quarter one year ago has exceeded that of the Insurance industry average, but is less than that of the S&P 500. The net income has decreased by 20.8% when compared to the same quarter one year ago, dropping from $106.00 million to $83.90 million.
  • In its most recent trading session, CNO has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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