Why Flagstar Financial Inc. (FLG) Went Up On Tuesday

We recently published a list of These 10 Companies Led Tuesday’s Charge. In this article, we are going to take a look at where Flagstar Financial Inc. (NYSE:FLG) stands against other companies that led Tuesday’s charge.

Wall Street’s main indices finished mixed on Tuesday, with the Nasdaq as the sole loser, as investors largely brushed off President Donald Trump’s tariff threats in hopes that countries would eventually reach a negotiated settlement.

Additionally, investors cheered signals from the Federal Reserve that a rate interest cut was not imminent, saying it would wait as necessary before implementing any rate adjustments.

The Dow Jones eked out a 0.28 percent gain, while the S&P 500 inched up 0.03 percent. The tech-heavy Nasdaq dropped 0.36 percent.

Ten companies on Tuesday led the charge amid a flurry of positive news sparking buying appetite. This article detailed the reasons behind their performance.

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

A professional banker in a suit consulting with a small business owner in an office.

Flagstar Financial Inc. (NYSE:FLG)

Flagstar Financial grew its share prices by 5.13 percent on Tuesday to end at $12.92 apiece as investors cheered the company’s optimistic outlook and efforts to turn the business to profitability.

According to FLG, among its strategies to support growth were cutting operating expenses by $600 million and expanding deposits within its consumer and private banking segments.

It would also bolster its workforce by hiring an additional 100 as part of its broader strategy to enhance commercial and industrial banking operations.

FLG CEO Joseph Otting posted optimism about the bank’s financial health, saying that the loan portfolio remained robust and that the bank was set to execute several loan sales in the year’s first quarter.

While still operating at a loss, FLG was able to narrow its net losses for the fourth quarter of 2024 by 94 percent to $160 million from the $2.704 billion registered in the same period a year earlier.

However, net loss in full-year 2024 soared by 1,279 percent to $1.09 billion from only $79 million in 2023.

Overall, FLG ranks 10th on our list of companies that led Tuesday’s charge. While we acknowledge the potential of FLG as an investment, our conviction lies in the belief that some 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 as promising as 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.