Trade-Ideas: TFS Financial (TFSL) Is Today's Strong And Under The Radar Stock

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

  • TFSL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.8 million.
  • TFSL is making at least a new 3-day high.
  • TFSL has a PE ratio of 66.0.
  • TFSL is mentioned 0.90 times per day on StockTwits.
  • TFSL has not yet been mentioned on StockTwits today.
  • TFSL is currently in the upper 20% of its 1-year range.
  • TFSL is in the upper 35% of its 20-day range.
  • TFSL is in the upper 45% of its 5-day range.
  • TFSL 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in TFSL with the Ticky from Trade-Ideas. See the FREE profile for TFSL NOW at Trade-Ideas

More details on TFSL:

TFS Financial Corporation operates as a holding company for Third Federal Savings and Loan Association of Cleveland. It provides retail consumer banking, including mortgage lending, deposit gathering, and other financial services. The stock currently has a dividend yield of 1.9%. TFSL has a PE ratio of 66.0. Currently there are 2 analysts that rate TFS Financial a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for TFS Financial has been 276,500 shares per day over the past 30 days. TFS Financial has a market cap of $4.4 billion and is part of the financial sector and banking industry. The stock has a beta of 1.00 and a short float of 2.3% with 3.56 days to cover. Shares are up 19.9% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates TFS Financial as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, expanding profit margins, solid stock price performance and notable return on equity. We feel these 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:
  • TFS FINANCIAL CORP has improved earnings per share by 20.0% 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, TFS FINANCIAL CORP increased its bottom line by earning $0.18 versus $0.03 in the prior year. This year, the market expects an improvement in earnings ($0.22 versus $0.18).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry average. The net income increased by 8.5% when compared to the same quarter one year prior, going from $16.25 million to $17.63 million.
  • The gross profit margin for TFS FINANCIAL CORP is rather high; currently it is at 69.96%. 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 17.72% trails the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 29.96% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.6%. Since the same quarter one year prior, revenues slightly dropped by 3.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists