Today's Strong And Under The Radar Stock: TFS Financial (TFSL)

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

  • TFSL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • TFSL has traded 22.8806000000000011596057447604835033416748046875 options contracts today.
  • TFSL is making at least a new 3-day high.
  • TFSL has a PE ratio of 68.
  • TFSL is mentioned 0.19 times per day on StockTwits.
  • TFSL has not yet been mentioned on StockTwits today.
  • TFSL is currently in the upper 20% of its 1-year range.
  • TFSL is in the upper 35% of its 20-day range.
  • TFSL is in the upper 45% of its 5-day range.
  • TFSL 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 TFSL with the Ticky from Trade-Ideas. See the FREE profile for TFSL NOW at Trade-Ideas More details on TFSL: TFS Financial Corporation operates as a holding company for Third Federal Savings and Loan Association of Cleveland that provides residential real estate mortgage loans and retail savings deposits. The stock currently has a dividend yield of 2.2%. TFSL has a PE ratio of 68. Currently there is 1 analyst that rates TFS Financial a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for TFS Financial has been 265,700 shares per day over the past 30 days. TFS Financial has a market cap of $5.3 billion and is part of the financial sector and banking industry. The stock has a beta of 0.49 and a short float of 2.3% with 9.71 days to cover. Shares are down 3.5% year-to-date as of the close of trading on Tuesday. 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 TFS Financial as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.0%. Since the same quarter one year prior, revenues slightly increased by 2.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TFS FINANCIAL CORP has improved earnings per share by 40.0% 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. During the past fiscal year, TFS FINANCIAL CORP increased its bottom line by earning $0.25 versus $0.21 in the prior year. This year, the market expects an improvement in earnings ($0.26 versus $0.25).
  • 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 23.0% when compared to the same quarter one year prior, going from $15.67 million to $19.28 million.
  • The gross profit margin for TFS FINANCIAL CORP is currently very high, coming in at 72.67%. 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 18.56% trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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. We feel, however, that the other strengths this company displays justify these higher price levels.

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.

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