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Is Fidelity National Financial (FNF) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Fidelity National Financial (FNF - Free Report) . FNF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

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 0.67. This compares to its industry's average P/S of 0.96.

Finally, investors should note that FNF has a P/CF ratio of 3.68. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.49. Over the past year, FNF's P/CF has been as high as 5.19 and as low as 3.45, with a median of 4.37.

Investors could also keep in mind United Fire Group (UFCS - Free Report) , an Insurance - Property and Casualty stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

United Fire Group sports a P/B ratio of 1.02 as well; this compares to its industry's price-to-book ratio of 1.22. In the past 52 weeks, UFCS's P/B has been as high as 1.12, as low as 0.63, with a median of 0.75.

These are only a few of the key metrics included in Fidelity National Financial and United Fire Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FNF and UFCS look like an impressive value stock at the moment.


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

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