Trade-Ideas LLC identified

Fidelity National Financial

(

FNF

) as a "water-logged and getting wetter" (weak stocks crossing below support 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 $45.5 million.
  • FNF has traded 1.6 million shares today.
  • FNF traded in a range 203.4% of the normal price range with a price range of $1.14.
  • FNF traded below 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 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on FNF:

Fidelity National Financial, Inc., together with its subsidiaries, provides title insurance, technology, and transaction services to the real estate and mortgage industries in the United States. It operates through Title, BKFS, and Restaurant Group segments. The stock currently has a dividend yield of 2.3%. FNF has a PE ratio of 1793. Currently there are 5 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 1.4 million shares per day over the past 30 days. Fidelity National Financial has a market cap of $10.0 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.86 and a short float of 1.8% with 3.66 days to cover. Shares are up 4.9% year-to-date as of the close of trading on Tuesday.

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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 revenue growth, solid stock price performance, compelling growth in net income, notable return on equity and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 15.7%. Since the same quarter one year prior, revenues rose by 14.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Insurance industry and the overall market, FIDELITY NATL FINL FNF GROUP's return on equity exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 30.7% when compared to the same quarter one year prior, rising from $101.00 million to $132.00 million.
  • FIDELITY NATL FINL FNF GROUP has improved earnings per share by 20.4% 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 reported lower earnings of $1.04 versus $1.67 in the prior year. This year, the market expects an improvement in earnings ($2.18 versus $1.04).

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