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Why First American Financial (FAF) Could Be a Top Value Stock Pick

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Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; First American Financial Corp. (FAF - Free Report) .

First American Financial in Focus

FAF may be an interesting play thanks to its forward PE of 8.9, its P/S ratio of 0.8, and its decent dividend yield of 3.6%. These factors suggest that First American Financial is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that FAF has decent revenue metrics to back up its earnings.

But before you think that First American Financial is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 10.1% in the past 30 days, thanks to one upward revisions in the past one month compared to none lower.

This estimate strength is actually enough to push FAF to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So really, First American Financial is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

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