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Why NewStar Financial (NEWS) Could Be a Potential Winner
December 05, 2016

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It commonly happens in stock investing that investors miss the chance of buying winning stocks that they knew would stand out. Before they take the plunge, others get to know the hidden potential and enter into these stocks, pushing them out of reach.

So, instead of repenting, spotting the off-the-radar potential winners and immediately investing in them could be a smart decision.

One such company that looks well positioned for a solid gain, but has been overlooked by investors lately, is NewStar Financial, Inc. (NEWS - Free Report) . This Finance-Small Business Investment Company & Commercial Industry stock has actually seen estimates rise over the past two months for the current fiscal year by about 18.6%. But that is not yet reflected in its price, as the stock lost 10.7 % over the last one month.

NEWSTAR FIN INC Price and Consensus

NEWSTAR FIN INC Price and Consensus | NEWSTAR FIN INC Quote

You should not be concerned about the price remaining muted going forward. This year’s expected earnings growth over the prior year is 27.5%, which should ultimately translate into price appreciation.

And if this isn’t enough, NEWS currently carries a Zacks Rank #2 (Buy) which further underscores the potential for its outperformance (See the performance of Zacks' portfolios and strategies here: About Zacks Performance). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So if you are looking for a stock flying under-the-radar that is well-equipped to bounce down the road, make sure to consider NewStar Financial. Solid estimate revisions and an impressive Zacks Rank suggest that better days may be ahead for NEWS and that now might be an interesting buying opportunity.

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