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 Federated National ( FNHC) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Federated National as such a stock due to the following factors:

  • FNHC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.9 million.
  • FNHC has traded 13,709 shares today.
  • FNHC is trading at a new lifetime high.

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More details on FNHC:

Federated National Holding Company, through its subsidiaries, is engaged in the insurance underwriting, distribution, and claims processing in the United States. The stock currently has a dividend yield of 0.4%. FNHC has a PE ratio of 11.9. Currently there are 2 analysts that rate Federated National a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Federated National has been 255,600 shares per day over the past 30 days. Federated has a market cap of $427.3 million and is part of the financial sector and insurance industry. The stock has a beta of 1.60 and a short float of 6.5% with 2.63 days to cover. Shares are up 121.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Federated National as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • FNHC's very impressive revenue growth greatly exceeded the industry average of 20.9%. Since the same quarter one year prior, revenues leaped by 109.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FNHC's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Insurance industry and the overall market, FEDERATED NATIONAL HLDG CO's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • Powered by its strong earnings growth of 225.80% and other important driving factors, this stock has surged by 193.64% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FNHC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • FEDERATED NATIONAL HLDG CO 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, FEDERATED NATIONAL HLDG CO increased its bottom line by earning $1.45 versus $0.53 in the prior year. This year, the market expects an improvement in earnings ($2.52 versus $1.45).

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

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