Fidelity National Financial (FNF) Showing Signs Of Being Strong And Under The Radar

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.

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 $62.7 million.
  • FNF is making at least a new 3-day high.
  • FNF has a PE ratio of 62.
  • FNF is mentioned 1.81 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. It operates through Title, BKFS, and Restaurant Group segments. The stock currently has a dividend yield of 2%. FNF has a PE ratio of 62. 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 1.4 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 2.8% with 4.73 days to cover. Shares are up 8.5% year-to-date as of the close of trading on Wednesday.

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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, compelling growth in net income, notable return on equity, solid stock price performance and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 15.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 490.9% when compared to the same quarter one year prior, rising from -$22.00 million to $86.00 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, FIDELITY NATL FINL FNF GROUP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Powered by its strong earnings growth of 372.72% and other important driving factors, this stock has surged by 35.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • FIDELITY NATL FINL FNF GROUP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FIDELITY NATL FINL FNF GROUP reported lower earnings of $1.02 versus $1.67 in the prior year. This year, the market expects an improvement in earnings ($2.27 versus $1.02).

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