Kearny Financial (KRNY) 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 Kearny Financial ( KRNY) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Kearny Financial as such a stock due to the following factors:

  • KRNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.2 million.
  • KRNY is making at least a new 3-day high.
  • KRNY has a PE ratio of 61.
  • KRNY is mentioned 1.65 times per day on StockTwits.
  • KRNY has not yet been mentioned on StockTwits today.
  • KRNY is currently in the upper 20% of its 1-year range.
  • KRNY is in the upper 35% of its 20-day range.
  • KRNY is in the upper 45% of its 5-day range.
  • KRNY 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 KRNY:

Kearny Financial Corp. operates as a holding company for Kearny Federal Savings Bank that provides various banking products and services. KRNY has a PE ratio of 61. Currently there are no analysts that rate Kearny Financial a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Kearny Financial has been 977,900 shares per day over the past 30 days. Kearny Financial has a market cap of $1.0 billion and is part of the financial sector and banking industry. The stock has a beta of 0.90 and a short float of 6.3% with 0.68 days to cover. Shares are up 11.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Kearny Financial as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and compelling growth in net income. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.2%. Since the same quarter one year prior, revenues rose by 12.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • KEARNY FINANCIAL CORP 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. This trend suggests that the performance of the business is improving. During the past fiscal year, KEARNY FINANCIAL CORP increased its bottom line by earning $0.12 versus $0.08 in the prior year. This year, the market expects an improvement in earnings ($0.15 versus $0.12).
  • 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. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
  • 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 Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, KEARNY FINANCIAL CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.

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