First Horizon National (FHN) 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 First Horizon National ( FHN) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified First Horizon National as such a stock due to the following factors:

  • FHN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.8 million.
  • FHN is making at least a new 3-day high.
  • FHN has a PE ratio of 39.
  • FHN is mentioned 1.19 times per day on StockTwits.
  • FHN has not yet been mentioned on StockTwits today.
  • FHN is currently in the upper 20% of its 1-year range.
  • FHN is in the upper 35% of its 20-day range.
  • FHN is in the upper 45% of its 5-day range.
  • FHN 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 FHN:

First Horizon National Corporation operates as the bank holding company for First Tennessee Bank National Association that provides various financial services in the United States and internationally. The stock currently has a dividend yield of 1.6%. FHN has a PE ratio of 39. Currently there are 4 analysts that rate First Horizon National a buy, 2 analysts rate it a sell, and 9 rate it a hold.

The average volume for First Horizon National has been 2.2 million shares per day over the past 30 days. First Horizon has a market cap of $3.4 billion and is part of the financial sector and banking industry. The stock has a beta of 0.95 and a short float of 6.7% with 8.91 days to cover. Shares are up 7.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates First Horizon National as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, solid stock price performance and notable return on equity. 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 gross profit margin for FIRST HORIZON NATIONAL CORP is currently very high, coming in at 91.49%. 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 -24.42% is in-line with the industry average.
  • Compared to its closing price of one year ago, FHN's share price has jumped by 29.45%, exceeding the performance of the broader market during that same time frame. 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.
  • FHN, with its decline in revenue, slightly underperformed the industry average of 0.0%. Since the same quarter one year prior, revenues slightly dropped by 4.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, FIRST HORIZON NATIONAL CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • FIRST HORIZON NATIONAL CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, FIRST HORIZON NATIONAL CORP increased its bottom line by earning $0.90 versus $0.10 in the prior year. For the next year, the market is expecting a contraction of 8.9% in earnings ($0.82 versus $0.90).

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