Are you "Profiting from the Pros?"
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click
OK. If you do not, click Cancel.
Back to top
Fidelity National Upped to Strong Buy
FNF RLI AFSI
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. , AmTrust Financial Services, Inc, ( AFSI - Snapshot Report) and RLI Corp. ( RLI - Analyst Report) . All these stocks carry the same Zacks Rank as Fidelity National.