Why Flagstar Financial (FLG) Skyrocketed on Friday?

We recently published a list of 10 Firms Buck Market Slump on Impressive Earnings, New Deals. In this article, we are going to take a look at where Flagstar Financial, Inc. (NYSE:FLG) stands against other firms buck market slump on impressive earnings, new deals.

The stock market ended the trading week in the red territory following President Donald Trump’s announcement that he would begin slapping tariffs against major US trading partners.

The Dow Jones shed 0.75 percent, the S&P 500 lost 0.50 percent, while the Nasdaq Composite dropped by 0.28 percent.

Ten companies bucked a wider market decline amid a flurry of positive catalysts that sparked buying appetite. In this article, we will take a look at which companies posted notable gains and explore the reasons behind their performance.

To come up with Friday’s gainers, we only considered those with $2 billion in market capitalization and $5 million in daily trading volume.

Source: Pixabay

Flagstar Financial, Inc. (NYSE:FLG)

Shares of Flagstar Financial, Inc. (NYSE:FLG) rose for a second day on Friday, adding 6.96 percent to its valuation to close at $11.83 as investor sentiment was boosted by an improvement in its earnings performance for the past quarter and full year of 2024.

While still operating at a loss, Flagstar was able to narrow its net losses by 97 percent during the fourth quarter to only a $0.34 loss per share versus the $11.27 recorded in the same period last year.

The figure was also 57 percent lower than the $0.79 booked in the third quarter of 2024.

Meanwhile, Flagstar (NYSE:FLG) was able to reach $625 million in revenues during the period, beating analysts’ projected revenues of $558.6 million.

By next year, Flagstar (NYSE:FLG) said it targets to finally swing to profitability, supported by a $600 million expense reduction plan and the sale of its non-core mortgage business to move to higher-margin businesses.

Overall, FLG ranks 10th on our list of firms buck market slump on impressive earnings, new deals. While we acknowledge the potential of FLG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FLG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.