First Trust High Yield Opportunities 2027 Term Fund Common Stock (FTHY)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach this as a Graham-style analyst: I want proven earning power, a sound balance sheet, and a margin of safety. First Trust High Yield Opportunities 2027 Term Fund is a $500.5M financial-services fund trading at $12.75 on 2026-10-13. The dividend yield is 11.76%, which is the headline attraction. But the quality evidence is thin. FairStock's Piotroski F-Score is only 2/9, and its Altman Z-Score is 1.82—both undemanding readings that suggest weak financial signals. The FairStock Score is 38/100. Valuation is not obviously expensive: FairStock calculates a P/E of 18.48 and a Graham Number of $14.85, giving a 14.14% margin of safety. Yet a high yield plus a discount can be a value trap if distributions are not covered. The fund trades near the bottom of its 52-week range of $12.54-$14.42, so sentiment is poor. Growth is impossible to judge: revenue growth, profit growth, ROE, ROCE, and D/E are all unavailable, and the Lynch category is none because only 0 years of filed results exist—three are needed. A competitive moat is not evident from the data; the supplied figures do not show pricing power or a durable advantage. In sum, the price is not demanding versus the Graham Number, but the financial health and track record do not meet my usual hurdle. I would need multiple years of filed results and evidence that the 11.76% yield is earned before calling this a sound value.

In plain English: This is a First Trust fund that aims at high-yield opportunities and has a 2027 term feature, based on its name. The numbers give a mixed but mostly weak picture: there are almost no filed results, the quality signals are low, and earnings are small relative to the share price. At $12.75, the fund offers a very high income yield and trades near the bottom of its one-year range; versus the limited value measures, it looks roughly fair with only a modest discount.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer