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FNF Group (FNF) Gains But Lags Market: What You Should Know

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FNF Group (FNF - Free Report) closed at $49.12 in the latest trading session, marking a +0.33% move from the prior day. This change lagged the S&P 500's 0.75% gain on the day.

Prior to today's trading, shares of the provider of title insurance and mortgage services had gained 5.84% over the past month. This has outpaced the Finance sector's gain of 1.42% and the S&P 500's loss of 0.05% in that time.

Investors will be hoping for strength from FNF as it approaches its next earnings release. In that report, analysts expect FNF to post earnings of $1.74 per share. This would mark year-over-year growth of 17.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.36 billion, up 12.87% from the year-ago period.

FNF's full-year Zacks Consensus Estimates are calling for earnings of $6.67 per share and revenue of $13.15 billion. These results would represent year-over-year changes of +24.91% and +22.04%, respectively.

Investors should also note any recent changes to analyst estimates for FNF. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.83% higher. FNF is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note FNF's current valuation metrics, including its Forward P/E ratio of 7.34. For comparison, its industry has an average Forward P/E of 15.1, which means FNF is trading at a discount to the group.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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