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5 Financial Stocks Investors Hate But Analysts Love

  +Follow December 9, 2013 8:43AM
Tickers Mentioned:

Here at Equities.com we take a keen interest in the disparity between what the market experts think will happen with plays, and what is actually playing out. The gulf between the analysts and the retail investors is perhaps most pronounced in the financial sector, where opaqueness can lead the two groups to take diametrically opposed positions on plays, with large groups playing long and short against each other.

As we wind down 2013 we thought it would be interesting to look to see what plays were currently splitting the investment community. That is, what financial stocks maintained high marks from analysts, yet were courting bets against them at exceedingly high rates?

To find these plays, we looked for financial stocks that could answer “yes” to the following questions:

1)      Does the stock currently have a short float of 25 percent or higher?

Plays where over 25 percent of shares are being “shorted” (or bet to fall) can definitely be considered to have an unusually high amount of investors betting against them.

2)      Does the stock currently have an analyst consensus rating of “buy” or better?

There are plenty of stocks out there that both the market and experts agree are no good. There are many that the market is actively shorting, but consensus still leans away from recommending investment. A consensus of “buy” or stringer indicates the majority of firms still believe the stoc will defy the shorters and rise in value.

Incredibly, out of all the financial sector stocks currently trading on NASDAQ or the NYSE we only found five stocks that could answer “yes” top both questions. They are:

AmTrust Financial Services, Inc. (AFSI)

Market-Cap: $3.05 billion

Price:  $41.06

P/E: 11.6

Performance YTD: +59.21

Short Float Percentage: 29.06


PacWest Bancorp (PACW)

Market-Cap: $1.87 billion

Price: $42.11

P/E: 27.34

Performance YTD: +75.53

Short Float Percentage: 27.92


PHH Corporation (PHH)

Market-Cap: $1.34 billion

Price: $23.35

P/E: 10.81

Performance YTD: +2.64

Short Float Percentage: 31.20


Radian Group Inc. (RDN)

Market-Cap: $2.49 billion

Price: $14.50

P/E: N/A

Performance YTD: +137.70

Short Float Percentage:  27.06


World Acceptance Corp. (WRLD)

Market-Cap: $1.08 billion

Price: $89.91

P/E: 10.86

Performance YTD: +20.45

Short Float Percentage: 30.11

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for AFSI
5 Mar 15 22:15:15
AFSI +0.86% Stock Charts $AFSI AmTrust Financial Services Inc. (NASDAQ) Last Updated: 03/06/2015 00:15:15 AFSI http://t.co/flKOarhFzm
Samuel Brown
5 Mar 15 13:31:22
$AFSI AmTrust Financial Services, Inc. Completes Acquisition of CorePointe Insurance ... http://t.co/pQMX4jrMyx
5 Mar 15 13:18:58
Stocks Trending Now: http://t.co/prRAmko7Sg $WBC $SMP $AAEH $CNGL $SBCF $AFSI $WFWL $HRB $DEAC $VYCO $GTCDF $MRWSY ~
5 Mar 15 08:31:10
Spectra7 news: incredible new chip out, up over 20% so far $SEV.V $SPVNF tgt $2+ $PL $PBI $AFSI investors read http://t.co/gvpSLFs3PD
5 Mar 15 03:01:03
$AFSI: Analyst Rating Update on AmTrust Financial Services, Inc.: http://t.co/UuWuatbmLm
Capital Market Labs
5 Mar 15 01:41:14
$AFSI #ALERT Earnings Increasing --> http://t.co/JTHBVQBOX7 #CML
Penny Stock Secret
4 Mar 15 15:28:30
Yesterday We Made $89,000 In Just One Trade More Info Here http://t.co/NovWYe2RAx .. $AFSI $FWRD $PRGN
Capital Market Labs
4 Mar 15 12:13:20
$AFSI #ALERT Assets Expanding --> http://t.co/6DOUQkve6L #CML
4 Mar 15 10:12:02
$AFSI: AmTrust Financials Shares Gain on CorePointe Acquisition: http://t.co/EZ8OUUv1c9
Jack Trader
4 Mar 15 06:03:44
$AFSI AmTrust Financial Services, Inc. Completes Acquisition of CorePointe Insurance ... http://t.co/IqxzWSp1AY
  +Follow December 9, 2013 8:43AM



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