Fidelity National Financial (FNF) trades at a discount to its peers and the overall market, with a forward P/E of 9.6X well into value territory. But estimates are on the rise too, providing a unique combination of growth and value for this Zacks #1 Rank stock.
Company Description
Fidelity National Financial is an insurance provider in the United States with a market cap of $3.4 billion.
Fidelity National has held strong in the recent sell off, supported by a compelling valuation and strong Q2 results from late July that came in ahead of expectations.
Second-Quarter Results
Although revenue slipped slightly from last year in a tough real estate environment, earnings came in ahead of expectations at 36 cents, 20% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 46% over the last four quarters.
The good results were driven by a 38% increase in commercial revenue from last year to $94 million. Margins were also on the upswing, with pre tax margin up 200 basis points to 11.7%. That would represent a 7% increase in earnings from last year.
Estimates
We saw some bullish movement in estimates off the good quarter, with he current-year estimate adding 49 cents to $1.64.
Valuation
With a forward P/E of 9.6X, FNF trades at a discount to its peer average of 14X. It’s Price/Sales multiple of .63 is well below its peer average of .88.
12-Month Chart
On the chart, shares continue to trade in elevated territory near the recent 52-week high just above $17.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.
