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Why Should You Stay Invested in Fidelity National (FNF) Stock?
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Fidelity National Financial (FNF - Free Report) is set to grow from its market-leading position, higher direct premiums, agency premiums, strong origination demand and effective capital deployment. These, along with solid growth projections, make the stock worth retaining.
Earnings of this Zacks Rank #3 (Hold) company grew 4.9% in the last five years. It carries a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
An Outperformer
Shares have gained 37.5% in a year, outperforming the industry’s increase of 19.8%, the Finance sector’s rise of 18.8% and the Zacks S&P 500 composite’s increase of 23.6% in the said time frame.
Image Source: Zacks Investment Research
Return on Equity
FNF’s return on equity in the trailing 12 months was 14.3%, better than the industry average of 7.8%, reflecting efficiency in utilizing shareholders’ funds.
Optimistic Growth Projection
The Zacks Consensus Estimate for FNF’s 2024 earnings is pegged at $4.67, indicating a 31.6% increase from the year-ago reported figure on 13.1% higher revenues of $13.3 billion. The consensus estimate for 2025 earnings is pegged at $5.65, indicating a 20.9% increase year over year on 1.3% higher revenues of $13.5 billion. The company has a Growth Score of B.
Growth Drivers
Fidelity National has a market-leading position in residential purchase, refinance and commercial markets while having one of the largest and deepest real estate data networks. This, in turn, provides a scale advantage to the title insurer. Real estate-related businesses complement its core title business. Its scale and volume fuel revenues and lower costs provide a competitive advantage.
The title insurer’s strategic move to buy F&G Annuities & Life is intended to shield itself from the volatility integral to the core title insurance business. F&G Annuities & Life is a leading provider of annuity and life insurance concentrated in the middle-income market and has a diversified growth strategy. Expanded distribution channels and attractive spreads should drive sales at F&G Annuities & Life.
Solid retail annuity sales and F&G's presence in institutional markets benefit assets under management. F&G invests in a high-quality and well-diversified portfolio and its average assets under management growth drives earnings.
In tandem with accelerated digitalization taking place in the industry, Fidelity National too is investing in technology to widen its market-leading position.
Banking on operational expertise, FNF has a solid capital position that supports wealth distribution, mergers and acquisitions, organic growth initiatives and debt payments.
Impressive Dividend History
FNF distributes wealth to shareholders via dividend hikes and share repurchases. Fidelity National has increased dividends at a 10-year CAGR of 9.7%. The dividend yield is 3.8%, better than the industry average of 0.3%.
HCI Group’s earnings surpassed estimates in each of the last four quarters, the average beat being 139.15%. Year to date, shares of HCI have gained 6.1%.
The Zacks Consensus Estimate for HCI’s 2024 and 2025 earnings implies 57.6% and 4.3% year-over-year growth, respectively.
Palomar’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 15.10%. Year to date, PLMR’s stock has surged 48.5%.
The Zacks Consensus Estimate for PLMR’s 2024 and 2025 earnings indicates 26% and 18.1% year-over-year growth, respectively.
ProAssurance earnings surpassed estimates in two of the last four quarters and missed in the other two. Year to date, PRA’s stock has lost 11.8%.
The Zacks Consensus Estimate for PRA’s 2024 and 2025 earnings implies 371.4% and 72.6% year-over-year growth, respectively.
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Why Should You Stay Invested in Fidelity National (FNF) Stock?
Fidelity National Financial (FNF - Free Report) is set to grow from its market-leading position, higher direct premiums, agency premiums, strong origination demand and effective capital deployment. These, along with solid growth projections, make the stock worth retaining.
Earnings of this Zacks Rank #3 (Hold) company grew 4.9% in the last five years. It carries a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
An Outperformer
Shares have gained 37.5% in a year, outperforming the industry’s increase of 19.8%, the Finance sector’s rise of 18.8% and the Zacks S&P 500 composite’s increase of 23.6% in the said time frame.
Image Source: Zacks Investment Research
Return on Equity
FNF’s return on equity in the trailing 12 months was 14.3%, better than the industry average of 7.8%, reflecting efficiency in utilizing shareholders’ funds.
Optimistic Growth Projection
The Zacks Consensus Estimate for FNF’s 2024 earnings is pegged at $4.67, indicating a 31.6% increase from the year-ago reported figure on 13.1% higher revenues of $13.3 billion. The consensus estimate for 2025 earnings is pegged at $5.65, indicating a 20.9% increase year over year on 1.3% higher revenues of $13.5 billion. The company has a Growth Score of B.
Growth Drivers
Fidelity National has a market-leading position in residential purchase, refinance and commercial markets while having one of the largest and deepest real estate data networks. This, in turn, provides a scale advantage to the title insurer. Real estate-related businesses complement its core title business. Its scale and volume fuel revenues and lower costs provide a competitive advantage.
The title insurer’s strategic move to buy F&G Annuities & Life is intended to shield itself from the volatility integral to the core title insurance business. F&G Annuities & Life is a leading provider of annuity and life insurance concentrated in the middle-income market and has a diversified growth strategy. Expanded distribution channels and attractive spreads should drive sales at F&G Annuities & Life.
Solid retail annuity sales and F&G's presence in institutional markets benefit assets under management. F&G invests in a high-quality and well-diversified portfolio and its average assets under management growth drives earnings.
In tandem with accelerated digitalization taking place in the industry, Fidelity National too is investing in technology to widen its market-leading position.
Banking on operational expertise, FNF has a solid capital position that supports wealth distribution, mergers and acquisitions, organic growth initiatives and debt payments.
Impressive Dividend History
FNF distributes wealth to shareholders via dividend hikes and share repurchases. Fidelity National has increased dividends at a 10-year CAGR of 9.7%. The dividend yield is 3.8%, better than the industry average of 0.3%.
Stocks to Consider
Some top-ranked stocks from the insurance industry are HCI Group, Inc. (HCI - Free Report) , Palomar Holdings (PLMR - Free Report) and ProAssurance (PRA - Free Report) . Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HCI Group’s earnings surpassed estimates in each of the last four quarters, the average beat being 139.15%. Year to date, shares of HCI have gained 6.1%.
The Zacks Consensus Estimate for HCI’s 2024 and 2025 earnings implies 57.6% and 4.3% year-over-year growth, respectively.
Palomar’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 15.10%. Year to date, PLMR’s stock has surged 48.5%.
The Zacks Consensus Estimate for PLMR’s 2024 and 2025 earnings indicates 26% and 18.1% year-over-year growth, respectively.
ProAssurance earnings surpassed estimates in two of the last four quarters and missed in the other two. Year to date, PRA’s stock has lost 11.8%.
The Zacks Consensus Estimate for PRA’s 2024 and 2025 earnings implies 371.4% and 72.6% year-over-year growth, respectively.