Back to top

Image: Bigstock

Should Value Investors Buy FNF Group (FNF) Stock?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a Value grade of A. The stock is trading with a P/E ratio of 8.76, which compares to its industry's average of 21.60. Over the last 12 months, FNF's Forward P/E has been as high as 14.93 and as low as 6.29, with a median of 10.07.

FNF is also sporting a PEG ratio of 1.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FNF's industry has an average PEG of 2.99 right now. Over the last 12 months, FNF's PEG has been as high as 1.40 and as low as 1.35, with a median of 1.38.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Fidelity National Financial, Inc. (FNF) - free report >>

Published in