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 or Stephanie Link.
Trade-Ideas LLC identified
) as a strong and under the radar 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 $26.7 million.
- FHN is making at least a new 3-day high.
- FHN has a PE ratio of 46.3.
- FHN is mentioned 0.55 times per day on StockTwits.
- FHN has not yet been mentioned on StockTwits today.
- FHN is currently in the upper 20% of its 1-year range.
- FHN is in the upper 35% of its 20-day range.
- FHN is in the upper 45% of its 5-day range.
- FHN 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 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 1.6%. FHN has a PE ratio of 46.3. Currently there are 2 analysts that rate First Horizon National a buy, 3 analysts rate it a sell, and 9 rate it a hold.
The average volume for First Horizon National has been 1.9 million shares per day over the past 30 days. First Horizon has a market cap of $3.0 billion and is part of the financial sector and banking industry. The stock has a beta of 1.44 and a short float of 6% with 6.11 days to cover. Shares are up 6.8% year-to-date as of the close of trading on Tuesday.
rates First Horizon National as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- FIRST HORIZON NATIONAL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, FIRST HORIZON NATIONAL CORP turned its bottom line around by earning $0.10 versus -$0.11 in the prior year. This year, the market expects an improvement in earnings ($0.85 versus $0.10).
- 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 84.7% when compared to the same quarter one year prior, rising from $42.39 million to $78.32 million.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.9%. Since the same quarter one year prior, revenues slightly dropped by 6.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, FIRST HORIZON NATIONAL CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full First Horizon National Ratings Report.