Back to top

Image: Bigstock

FNF Group (FNF) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

FNF Group (FNF - Free Report) closed the most recent trading day at $45.53, moving -1.83% from the previous trading session. This change lagged the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.67%.

Prior to today's trading, shares of the provider of title insurance and mortgage services had lost 2.93% over the past month. This has lagged the Finance sector's gain of 2.49% and the S&P 500's gain of 2.44% in that time.

Wall Street will be looking for positivity from FNF as it approaches its next earnings report date. The company is expected to report EPS of $0.81, up 28.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.19 billion, up 29.36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.33 per share and revenue of $8.30 billion, which would represent changes of +23.33% and +9.26%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for FNF. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 7.95% higher within the past month. FNF is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, FNF currently has a Forward P/E ratio of 13.95. Its industry sports an average Forward P/E of 15.41, so we one might conclude that FNF is trading at a discount comparatively.

It is also worth noting that FNF currently has a PEG ratio of 1.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Insurance - Property and Casualty stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


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

Published in