Trade-Ideas: Fidelity National Financial (FNF) 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 Fidelity National Financial ( FNF) as a strong and under the radar 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 $55.9 million.
  • FNF is making at least a new 3-day high.
  • FNF has a PE ratio of 51.3.
  • FNF is mentioned 1.52 times per day on StockTwits.
  • FNF has not yet been mentioned on StockTwits today.
  • FNF is currently in the upper 20% of its 1-year range.
  • FNF is in the upper 35% of its 20-day range.
  • FNF is in the upper 45% of its 5-day range.
  • FNF 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 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. The stock currently has a dividend yield of 2.4%. FNF has a PE ratio of 51.3. 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 1.5 million shares per day over the past 30 days. Fidelity National Financial has a market cap of $9.0 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.00 and a short float of 2% with 3.15 days to cover. Shares are up 0.2% year-to-date as of the close of trading on Tuesday.

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 Fidelity National Financial as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • FNF's revenue growth trails the industry average of 21.6%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 130.76% to $300.00 million when compared to the same quarter last year. In addition, FIDELITY NATL FINL FNF GROUP has also vastly surpassed the industry average cash flow growth rate of 33.95%.
  • Compared to its closing price of one year ago, FNF's share price has jumped by 37.92%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Insurance industry average. The net income increased by 8.5% when compared to the same quarter one year prior, going from $94.00 million to $102.00 million.
  • Despite currently having a low debt-to-equity ratio of 0.54, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.

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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