Trade-Ideas LLC identified
) 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 $47.5 million.
- FNF has traded 1.3 million shares today.
- FNF traded in a range 219.1% of the normal price range with a price range of $2.04.
- FNF traded above its daily resistance level (quality: 34 days, meaning that the stock is crossing a resistance level set by the last 34 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, 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 2.8%. FNF has a PE ratio of 1481. 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 1.3 million shares per day over the past 30 days. Fidelity National Financial has a market cap of $10.5 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.92 and a short float of 1.8% with 3.19 days to cover. Shares are down 14.1% year-to-date as of the close of trading on Wednesday.
rates Fidelity National Financial as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 17.1%. Since the same quarter one year prior, revenues slightly increased by 9.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FIDELITY NATL FINL FNF GROUP 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 two years. We feel that this trend should continue. 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 ($2.51 versus $1.90).
- Despite currently having a low debt-to-equity ratio of 0.49, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- The gross profit margin for FIDELITY NATL FINL FNF GROUP is rather low; currently it is at 16.14%. Regardless of FNF's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.06% trails the industry average.
- You can view the full Fidelity National Financial Ratings Report.