Back to top

Analyst Blog

On Feb 22, Zacks Investment Research upgraded Fidelity National Financial, Inc. (FNF - Snapshot Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Fidelity National has been witnessing rising earnings estimates on the back of solid fourth-quarter 2013 results. Moreover, this well-known property and casualty insurer delivered positive earnings surprises in all of the last 4 quarters with an average beat of 9.5%. The long-term expected earnings growth rate for this stock is 2%.    

Fidelity National reported fourth-quarter results on Feb 12. Non-GAAP earnings per share came in at 43 cents, surpassing the Zacks Consensus Estimate by 19.4%. However, earnings declined 40% year over year.

Nonetheless, the company witnessed a 3.2% decline in expenses year over year, attributable to lower personnel costs and other operating expenses. Fidelity National recognized an estimated $150 million in annualized synergies. It is targeting $180 million to $190 million by the end of the first quarter and at least $225 million by the end of the second quarter.

Fidelity National also targets debt-to-total-capital ratio at around 35% at the end of the first quarter.

The Zacks Consensus Estimate for earnings in 2014 increased 8.2% to $2.10 per share as half of the estimates were revised higher over the last 30 days. For 2015, 1 of 3 estimates was revised higher over the same time frame, lifting the Zacks Consensus Estimate for the year by 7.5% to $2.29 per share.

Other Stocks to Consider

Other players in the property and casualty industry that look attractive at current levels include ACE Ltd. (ACE - Analyst Report), AmTrust Financial Services, Inc, (AFSI - Snapshot Report) and RLI Corp. (RLI - Analyst Report). All these stocks carry the same Zacks Rank as Fidelity National.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%
AROTECH COR… ARTX 3.78 +5.59%