Why Flagstar Financial Inc. (FLG) Soared on Thursday

We recently compiled a list of the 10 Firms Lead Thursday’s Rally on Better Earnings, Bargain-Hunting. In this article, we are going to take a look at where Flagstar Financial Inc. (NYSE:FLG) stands against the other stocks.

Optimistic sentiment continued to drive Wall Street on Thursday, with all major indices closing higher.

The Dow Jones Industrial Average rose by 0.38 percent, the S&P 500 grew 0.53 percent, and the Nasdaq Composite was up by 0.25 percent.

Ten companies posted notable gains, largely fueled by strong earnings results for the fourth quarter and full-year 2024.

To come up with Thursday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A successful investor with a portfolio including Finance Receivables, biotechnology, and medical device investments.

Flagstar Financial Inc. (NYSE:FLG)

Flagstar Financial, owner of Flagstar Bank, increased its share prices by 15.21 percent on Thursday to close at $11.06 apiece after improving its earnings performance in the fourth quarter of the year.

While still operating at a loss, Flagstar was able to narrow its net loss by 57 percent to $0.34 loss per share as compared with the $0.79 loss per share registered in the third quarter last year.

The current valuation also marked a significant improvement from the $11.27 loss per share posted in the fourth quarter of 2023.

Meanwhile, revenues were higher at $625 million versus analyst expectations of $558.6 million.

Flagstar said it targets to swing to profitability by 2026 with a $600 million expense reduction plan. To support the plan, the company said it would sell its non-core mortgage business and move to higher-margin businesses.

Overall FLG ranks 2nd on our list of Thursday’s top gainers. 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 timeframe. 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.