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Fidelity National (FNF) Up 36% in a Year: More Upside Left?
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Shares of Fidelity National Financial (FNF - Free Report) have rallied 35.9% in a year compared with the industry and the Finance sector’s rally of 17% and 24.1%, respectively. The Zacks S&P 500 composite has increased 29.7% in the said time frame. With a market capitalization of $14.8 billion, the average volume of shares traded in the last three months was 1.5 million.
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Leading market share in the residential purchase, refinance, and commercial markets, industry-leading margins, and solid capital position continue to drive Fidelity National. This Zacks Rank #1 (Strong Buy) title insurer has a solid track of beating earnings estimates in the trailing 11 quarters.
Return on equity in the trailing 12 months was 25.7%, better than the industry average of 5.6%. This highlights the company’s efficiency in utilizing shareholders’ fund.
Can it Retain the Momentum?
Fidelity National has a leading market share in the residential purchase, refinance, and commercial markets. Thus, this nation’s largest title insurance and settlement services company remains well poised to benefit from the improving U.S. real estate market.
Acquisition of F&G Annuities & Life, a leading provider of annuity and life insurance, concentrated in the middle-income market, in 2020 provided Fidelity National a breather from the volatility integral to the core title insurance business.
Fidelity National has been delivering industry-leading margins.
This title insurer should continue to witness momentum in refinance volumes, strong purchase demand and rebound in commercial real estate activity.
Fidelity National has a solid balance sheet that supports effective capital deployment including dividend, share buyback, mergers and acquisitions, organic growth initiative and debt payment.
Dividend History
Riding on a solid capital position, the company has been hiking dividends for the last 11 years. Dividends increased at a nine-year CAGR of nearly 12%. Its dividend yield of 3.4% appears attractive compared with the industry average of 0.4%, making it an attractive pick for yield-seeking investors.
Attractive Valuation
Shares are currently undervalued. Its price to earnings multiple of 7.17 is much lower than the industry average of 32.14. It also has an impressive Value Score of A. Before valuation expands, it’s better to take a position in the stock. Back-tested results have shown that stocks with a solid Value Score and favorable Zacks Rank generate better returns.
Other Stocks to Consider
Some other top-ranked stocks from the same space include Hallmark Financial Services (HALL - Free Report) , Berkshire Hathaway (BRK.B - Free Report) and First American Financial (FAF - Free Report) .
The Zacks Consensus Estimate for Hallmark Financial’s 2022 earnings stands at 25 cents on revenues of $363.2 million. Hallmark Financial, sporting a Zacks Rank #1, delivered a four-quarter average earnings surprise of 53.62%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Berkshire carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2022 earnings moved up by a cent in the last 60 days. The expected long term earnings grpwth is pegged at 7%. Berkshire delivered a four-quarter average earnings surprise of 5.53%.
The Zacks Consensus Estimate for First American’s 2022 earnings has moved 0.4% higher in the past 30 days. First American, carrying Zacks Rank #2, delivered a four-quarter average earnings surprise of 29.19%.
Shares of HALL, BRK.B and FAF have rallied 32.2%, 30.9% and 52.9%, respectively, in a year.
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Fidelity National (FNF) Up 36% in a Year: More Upside Left?
Shares of Fidelity National Financial (FNF - Free Report) have rallied 35.9% in a year compared with the industry and the Finance sector’s rally of 17% and 24.1%, respectively. The Zacks S&P 500 composite has increased 29.7% in the said time frame. With a market capitalization of $14.8 billion, the average volume of shares traded in the last three months was 1.5 million.
Leading market share in the residential purchase, refinance, and commercial markets, industry-leading margins, and solid capital position continue to drive Fidelity National. This Zacks Rank #1 (Strong Buy) title insurer has a solid track of beating earnings estimates in the trailing 11 quarters.
Return on equity in the trailing 12 months was 25.7%, better than the industry average of 5.6%. This highlights the company’s efficiency in utilizing shareholders’ fund.
Can it Retain the Momentum?
Fidelity National has a leading market share in the residential purchase, refinance, and commercial markets. Thus, this nation’s largest title insurance and settlement services company remains well poised to benefit from the improving U.S. real estate market.
Acquisition of F&G Annuities & Life, a leading provider of annuity and life insurance, concentrated in the middle-income market, in 2020 provided Fidelity National a breather from the volatility integral to the core title insurance business.
Fidelity National has been delivering industry-leading margins.
This title insurer should continue to witness momentum in refinance volumes, strong purchase demand and rebound in commercial real estate activity.
Fidelity National has a solid balance sheet that supports effective capital deployment including dividend, share buyback, mergers and acquisitions, organic growth initiative and debt payment.
Dividend History
Riding on a solid capital position, the company has been hiking dividends for the last 11 years. Dividends increased at a nine-year CAGR of nearly 12%. Its dividend yield of 3.4% appears attractive compared with the industry average of 0.4%, making it an attractive pick for yield-seeking investors.
Attractive Valuation
Shares are currently undervalued. Its price to earnings multiple of 7.17 is much lower than the industry average of 32.14. It also has an impressive Value Score of A. Before valuation expands, it’s better to take a position in the stock. Back-tested results have shown that stocks with a solid Value Score and favorable Zacks Rank generate better returns.
Other Stocks to Consider
Some other top-ranked stocks from the same space include Hallmark Financial Services (HALL - Free Report) , Berkshire Hathaway (BRK.B - Free Report) and First American Financial (FAF - Free Report) .
The Zacks Consensus Estimate for Hallmark Financial’s 2022 earnings stands at 25 cents on revenues of $363.2 million. Hallmark Financial, sporting a Zacks Rank #1, delivered a four-quarter average earnings surprise of 53.62%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Berkshire carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2022 earnings moved up by a cent in the last 60 days. The expected long term earnings grpwth is pegged at 7%. Berkshire delivered a four-quarter average earnings surprise of 5.53%.
The Zacks Consensus Estimate for First American’s 2022 earnings has moved 0.4% higher in the past 30 days. First American, carrying Zacks Rank #2, delivered a four-quarter average earnings surprise of 29.19%.
Shares of HALL, BRK.B and FAF have rallied 32.2%, 30.9% and 52.9%, respectively, in a year.