{"id":12818074,"date":"2025-05-08T11:37:35","date_gmt":"2025-05-08T15:37:35","guid":{"rendered":"https:\/\/www.philstockworld.com\/?p=12818074"},"modified":"2025-05-08T11:37:35","modified_gmt":"2025-05-08T15:37:35","slug":"philstockworld-top-trade-alert-may-8-2025-newtekone-newt","status":"publish","type":"post","link":"https:\/\/www.philstockworld.com\/2025\/05\/08\/philstockworld-top-trade-alert-may-8-2025-newtekone-newt\/","title":{"rendered":"PhilStockWorld Top Trade Alert &#8211; May 8 2025 &#8211; NewtekOne (NEWT)"},"content":{"rendered":"<p><strong>NewtekOne is a financial holding company that provides business and financial solutions to the small and medium-sized business market.<\/strong><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/050825\/NEWTw104622663i.png\" alt=\"comment image\" \/><\/p>\n<p>Pros:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Strong Value Play: P\/E ratio of 5.33, well below our threshold of 20<\/li>\n<li>Solid Dividend: 7.97% dividend yield with $0.76 annual dividend<\/li>\n<li>Growth in Book Value: Tangible book value per share grew 23% year-over-year to $10.17<\/li>\n<li>Strong Q1 Performance: Diluted EPS of $0.35, exceeding guidance of $0.28-$0.32<\/li>\n<li>Significant Insider Buying: Multiple executives including the CEO have been consistently purchasing shares over the past year<\/li>\n<li>Improving Efficiency: Efficiency ratio improved to 62.1% from 70.6% in Q1 2024<\/li>\n<li>Pre-Provision Revenue Growth: 47% year-over-year increase to $25.2 million<\/li>\n<li>Clear Catalyst: Forecasting 2025 EPS between $2.10-$2.50, targeting $1.0B in SBA 7(a) loan fundings<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Cons:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Potential Interest Rate Sensitivity: As a financial institution, could face challenges if interest rates remain volatile<\/li>\n<li>Loan Portfolio Risk: Focused on small business lending, which could face pressure in an economic downturn<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Assessment: NEWT strongly meets our value criteria with its exceptionally low P\/E ratio of 5.33 and provides significant income through its 7.97% dividend yield. The consistent insider buying signals management\u2019s confidence in the company\u2019s prospects. The 23% growth in tangible book value provides both a solid floor and evidence of execution. With projected EPS growth and clear business expansion plans for 2025, NEWT has identifiable catalysts.<\/strong><\/p>\n<p>NEWT offers exceptional value with its low P\/E ratio, provides significant income through its dividend, shows strong fundamental growth, and has clear catalysts for future appreciation. The consistent insider buying provides additional confidence in management\u2019s outlook.<\/p>\n<p>For investors seeking alternatives in the financial sector, bank stocks are broadly recommended by Wall Street analysts for 2025.\u00a0The financial sector fund (XLF) has shown strong performance, increasing nearly 7% since November 5, 2024, outpacing the broader S&amp;P 500.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/050825\/XLFd113182439i.png\" alt=\"Finviz Chart\" \/><\/p>\n<blockquote>\n<p><strong>In summary, NEWT offers the rare combination of deep value, income, growth, and potential catalysts that make it an attractive investment in the financial sector based on our criteria.<\/strong><\/p>\n<\/blockquote>\n<h3><a href=\"https:\/\/seekingalpha.com\/article\/4747764-newtekone-bank-conversion-progressing-well#source=section%3Asummary%7Csection_asset%3Aall_analysis%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A3\" target=\"_blank\" rel=\"noopener nofollow ugc\"><strong><span style=\"text-decoration: underline;\">NewtekOne: Bank Conversion Progressing Well<\/span><\/strong><\/a><\/h3>\n<p style=\"padding-left: 40px;\"><span style=\"color: #0000ff;\"><strong>For our Income Portfolio, let&#8217;s add NEWT:\u00a0\u00a0<\/strong><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"color: #0000ff;\"><strong>Buy 3,000 NEWT for $9.95 ($29,850)\u00a0<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 30 NEWT Dec $10 calls for $1.10 ($3,300)\u00a0<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 30 NEWT Dec $10 puts for $1.30 ($3,900)\u00a0<\/strong><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"color: #0000ff;\"><strong>That&#8217;s net $22,650 and, if we&#8217;re called away at $10, that will be a $7,350 profit PLUS 2x 0.19 in dividends is $1,140 so $8,490 (37.4%) in upside potential over 7 months!\u00a0\u00a0<\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NewtekOne is a financial holding company that provides business and financial solutions to the small and medium-sized business market. Pros: Strong Value Play: P\/E ratio of 5.33, well below our threshold of 20 Solid Dividend: 7.97% dividend yield with $0.76 annual dividend Growth in Book Value: Tangible book value per share grew 23% year-over-year to [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":12818075,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26305],"tags":[],"class_list":{"0":"post-12818074","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-trades"},"_links":{"self":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12818074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/comments?post=12818074"}],"version-history":[{"count":1,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12818074\/revisions"}],"predecessor-version":[{"id":12818076,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12818074\/revisions\/12818076"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/media\/12818075"}],"wp:attachment":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/media?parent=12818074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/categories?post=12818074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/tags?post=12818074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}