Back to top

Image: Bigstock

Is Fidelity National Financial (FNF) a Great Value Stock Right Now?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company value investors might notice is Fidelity National Financial (FNF - Free Report) . FNF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that FNF has a P/B ratio of 1.21. 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 stock's P/B looks attractive against its industry's average P/B of 1.27. Within the past 52 weeks, FNF's P/B has been as high as 1.68 and as low as 1.19, with a median of 1.51.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FNF has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.95.

Finally, we should also recognize that FNF has a P/CF ratio of 3.75. 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. This stock's P/CF looks attractive against its industry's average P/CF of 7.43. FNF's P/CF has been as high as 5.50 and as low as 3.69, with a median of 4.52, all within the past year.

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 0.71 as well; this compares to its industry's price-to-book ratio of 1.27. In the past 52 weeks, KINS's P/B has been as high as 1.04, as low as 0.58, with a median of 0.77.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Fidelity National Financial and Kingstone Companies are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FNF and KINS 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 >>

Kingstone Companies, Inc (KINS) - free report >>

Published in