Trade-Ideas: Flagstar Bancorp (FBC) 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.

Trade-Ideas LLC identified Flagstar Bancorp ( FBC) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Flagstar Bancorp as such a stock due to the following factors:

  • FBC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.8 million.
  • FBC is making at least a new 3-day high.
  • FBC has a PE ratio of 86.
  • FBC is mentioned 1.03 times per day on StockTwits.
  • FBC has not yet been mentioned on StockTwits today.
  • FBC is currently in the upper 20% of its 1-year range.
  • FBC is in the upper 35% of its 20-day range.
  • FBC is in the upper 45% of its 5-day range.
  • FBC 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 FBC with the Ticky from Trade-Ideas. See the FREE profile for FBC NOW at Trade-Ideas

More details on FBC:

Flagstar Bancorp, Inc. operates as a savings and loan holding company for Flagstar Bank, FSB that offers financial products and services to individuals and businesses in the United States. FBC has a PE ratio of 86. Currently there are 3 analysts that rate Flagstar Bancorp a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Flagstar Bancorp has been 148,800 shares per day over the past 30 days. Flagstar has a market cap of $1.1 billion and is part of the financial sector and banking industry. The stock has a beta of 0.39 and a short float of 3.9% with 5.50 days to cover. Shares are up 19.7% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Flagstar Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins, increase in stock price during the past year and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 9.2%. Since the same quarter one year prior, revenues rose by 39.8%. 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 Thrifts & Mortgage Finance industry. The net income increased by 140.2% when compared to the same quarter one year prior, rising from -$78.42 million to $31.50 million.
  • The gross profit margin for FLAGSTAR BANCORP INC is currently very high, coming in at 94.48%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.94% trails the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • FLAGSTAR BANCORP INC 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, FLAGSTAR BANCORP INC swung to a loss, reporting -$1.72 versus $4.36 in the prior year. This year, the market expects an improvement in earnings ($1.39 versus -$1.72).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Stocks Rise Sharply, Facebook Ignites a Nasdaq Rally

Stocks Rise Sharply, Facebook Ignites a Nasdaq Rally

Why Nashville, Denver, LA Should Reconsider Bids for Amazon HQ2

Why Nashville, Denver, LA Should Reconsider Bids for Amazon HQ2

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists

Jim Cramer: Visa Is a Technology Company That Masquerades as a Financial Company

Jim Cramer: Visa Is a Technology Company That Masquerades as a Financial Company

Jim Cramer: Chipotle Shares Are Probably Done Going Down

Jim Cramer: Chipotle Shares Are Probably Done Going Down