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Should Value Investors Buy FNF Group (FNF) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 FNF Group (FNF - Free Report) . FNF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.10, which compares to its industry's average of 24.66. FNF's Forward P/E has been as high as 14.45 and as low as 10.30, with a median of 13.12, all within the past year.

Finally, investors will want to recognize that FNF has a P/CF ratio of 12.77. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.27. Within the past 12 months, FNF's P/CF has been as high as 12.91 and as low as 8.02, with a median of 11.63.

Value investors will likely look at more than just these metrics, but the above data helps show that FNF Group is likely undervalued currently. And when considering the strength of its earnings outlook, FNF sticks out at as one of the market's strongest value stocks.


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