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Bear of the Day: Federated National Holding (FNHC)

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Federated National Holding (FNHC - Free Report) is the Bear of the Day today.  The stock has been a Zacks Rank #5 (Strong Sell) since March 14 of this year and has held the lowest rank for the longest of any Zacks Rank #5 (Strong Sell).  The next longest streak of being a Zacks Rank #5 (Strong Sell) is AmTrust Financial (AFSI - Free Report) which landed on the bottom on April 5 of this year.  I mention this because both stocks are in the insurance world and specialize in Property and Casualty.


Federated National Holding Company is an insurance holding company, which through its subsidiaries, controls all aspects of the insurance underwriting, distribution and claims processes. The Company underwrites homeowners' property and casualty, commercial general liability, commercial residential property, flood, personal automobile and commercial automobile. It is also licensed to and has the facilities to market and underwrite policies for other insurance carriers' lines of business such as, inland marine, workers' compensation and personal umbrella insurance. Federated National Holding Company, formerly known as 21st Century Holding Company, is based in Sunrise, Florida.

Earnings History

FNHC has missed the Zacks Consensus Estimate in each of the four quarters.  Normally that would eliminate a stock like this from my radar screen as management needs to guide Wall Street in a different way.  On the topline, however, I see some great consistent growth so I will keep this stock on my radar screen.

Estimate Revision

The Zacks Consensus Estimate for 2017 has moved from $1.90 in March to $1.45 in July and that is not what investors want to see.  Investors should wait to see estimates trending higher before buying any stock and that is what the Zacks Rank will do for you.

The Zacks Consensus Estimate for 2018 hasn’t seen a similar move, but it has trended lower.  In March the number was $2.50 but it only slipped a dime to $2.40. This tells me visibility for the P&C industry is not that good.



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