10 Best Stocks for 2014: #10, Fortegra Financial (FRF)
Investor: Hilary Kramer
YTD Return: -15%
Hilary Kramer’s GameChangers stock-picking newsletter focuses on stocks that are ambitious and changing the way businesses and consumers function. Fortegra (FRF) is a great example of that, since this non-traditional financial stock has a unique business model.
FRF provides payment protection for things such as warranties and motor club services, as well as other insurance services. It has worked to expand its product offerings in the fastest-growing areas of insurance to increase its customer base while meeting their biggest demands. That growth potential is strong, and a string of acquisitions will also help build the company’s business and open up new sources of revenue.
Of course, with a game-changing player there are always going to be challenges, and FRF has seen some trouble early on in 2014 as the company posted not just an earnings drop in early March, but also a profit figure that fell short of forecasts.
This came after a weak start to the year, and sentiment has been pretty negative over the last few months.
But remember, our Best Stocks for 2014 contest isn’t won in just a few weeks or months. Stocks need to show their power over the long haul, and there’s plenty of time for FRF to get back in gear before year’s end.