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Should Value Investors Buy Fidelity National Financial (FNF) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Fidelity National Financial (FNF - Free Report) . FNF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Investors should also recognize that FNF has a P/B ratio of 1.26. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.35. Within the past 52 weeks, FNF's P/B has been as high as 1.68 and as low as 1.26, with a median of 1.52.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FNF has a P/S ratio of 0.74. This compares to its industry's average P/S of 1.06.

Finally, investors will want to recognize that FNF has a P/CF ratio of 3.89. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. FNF's current P/CF looks attractive when compared to its industry's average P/CF of 6.93. Over the past 52 weeks, FNF's P/CF has been as high as 5.50 and as low as 3.87, with a median of 4.57.

Kingstone Companies (KINS - Free Report) may be another strong Insurance - Property and Casualty stock to add to your shortlist. KINS is a # 2 (Buy) stock with a Value grade of A.

Kingstone Companies sports a P/B ratio of 0.68 as well; this compares to its industry's price-to-book ratio of 1.35. In the past 52 weeks, KINS's P/B has been as high as 1.04, as low as 0.63, with a median of 0.80.

These are just a handful of the figures considered in Fidelity National Financial and Kingstone Companies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FNF and KINS is an impressive value stock right now.


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

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