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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 an A grade for Value. The stock holds a P/E ratio of 7.77, while its industry has an average P/E of 22.04. FNF's Forward P/E has been as high as 14.93 and as low as 6.29, with a median of 10.98, all within the past year.

Investors will also notice that FNF has a PEG ratio of 1.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FNF's PEG compares to its industry's average PEG of 3.05. FNF's PEG has been as high as 1.41 and as low as 1.35, with a median of 1.40, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that FNF Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FNF feels like a great value stock at the moment.


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