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Should Value Investors Buy FNF Group (FNF) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

FNF Group (FNF - Free Report) is a stock many investors are watching right now. FNF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.06 right now. For comparison, its industry sports an average P/E of 21.88. Over the past 52 weeks, FNF's Forward P/E has been as high as 14.93 and as low as 6.29, with a median of 10.79.

FNF is also sporting a PEG ratio of 1.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FNF's industry has an average PEG of 3.02 right now. Over the last 12 months, FNF's PEG has been as high as 1.41 and as low as 1.35, with a median of 1.40.

These are just a handful of the figures considered in FNF Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FNF is an impressive value stock right now.


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