Fidelity National Financial Inc. ( FNF Quick Quote FNF - Free Report) should continue to benefit from higher direct premiums, agency premiums, rising order volumes and a solid capital position. Earnings Surprise History
Fidelity National has a solid track record of beating earnings estimates in each of the last seven quarters.
Zacks Rank & Price Performance
Fidelity National currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 19.3% compared with the
industry’s decline of 7.2%.
Image Source: Zacks Investment Research Style Score
Fidelity National is well-poised for progress, which is evident from its favorable
VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum. Return on Equity (ROE)
The company’s return on equity in the trailing 12 months was 25.4%, better than the industry average of 6.4%, reflecting efficiency in utilizing shareholders’ funds.
Premiums are likely to have increased on higher direct premiums, agency premiums, and escrow, title-related and other fees.
FNF is likely to have benefited from strong origination demand and continued rebound in commercial real estate activity. Higher order volumes should drive its commercial performance. Expanded distribution channel and attractive spreads despite the low interest rate environment are expected to have aided sales at F&G Annuities & Life. Assets under management are expected to have benefited from solid retail annuity sales and F&G's interest in institutional markets. Fidelity National continues to make investments in technology to widen its market-leading position. FNF remains focused on ensuring a balanced capital allocation strategy by making investments in title technology and other strategic initiatives to support innovation and organic growth in the business. Fidelity National continues to evaluate sensible strategic M&A opportunities in real estate-related businesses, title agencies and technology acquisitions. The title insurer has a solid balance sheet, cushioning dividend payouts, share buybacks, mergers and acquisitions, organic growth initiatives, and debt payments. FNF continues to return excess cash to shareholders over time through share repurchases. The company has increased dividends, witnessing an eight-year (2015-2022) CAGR of 11.1%. The dividend yield is 4.5%, better than the industry average of 0.4%. Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are
Arch Capital Group Ltd. ( ACGL Quick Quote ACGL - Free Report) , American Financial Group, Inc. ( AFG Quick Quote AFG - Free Report) and ProAssurance Corporation ( PRA Quick Quote PRA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. The bottom line of Arch Capital surpassed earnings estimates in three of the last four quarters and missed in one, the average being 33.64%. In the past year, the insurer has rallied 15.4%. The Zacks Consensus Estimate for Arch Capital’s 2022 and 2023 earnings has moved 5.7% and 4.9% north, respectively, in the past 30 days. American Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 37.09%. In the past year, American Financial has lost 7.9%. The Zacks Consensus Estimate for AFG’s 2022 and 2023 earnings has moved 3.1% and 3.3% north, respectively, in the past 30 days. The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average being 150.9%. In the past year, the insurer has lost 15.6%. The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 25.9% and 13.9% north, respectively, in the past 30 days.