Fidelity National (FNF) Rises 25% YTD: Will the Rally Continue?
Fidelity National Financial’s FNF shares have gained 25.1% year to date, outperforming the industry’s increase of 12.1%, the Finance sector’s rise of 10.8% and the Zacks S&P 500 composite’s rally of 21.1%. With a market capitalization of $12.8 billion, the average volume of shares traded in the last three months was 2.4 million.
Higher direct premiums, agency premiums, strong origination demand and effective capital deployment should continue to drive this Zacks Rank #3 (Hold) company. Earnings of this insurer increased 16.5% in the last five years.
Fidelity National’s return on equity in the trailing 12 months was 16%, better than the industry average of 7.2%, reflecting efficiency in utilizing shareholders’ funds.
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Can the Stock Retain the Momentum?
The Zacks Consensus Estimate for 2024 earnings implies a 31.6% year-over-year increase and has moved 1.2% north in the past 30 days, reflecting analysts’ optimism. It has a Growth Score of B.
FNF’s market-leading position in residential purchase, refinance and commercial markets provides a scale advantage. This, in turn, helps it witness momentum in refinance volumes, strong purchase demand and a rebound in commercial real estate activity. The title insurer’s core title business is complemented by ancillary real estate-related businesses.
Banking on the strength of its scale and volume, the title insurer has been delivering industry-leading margins.
F&G Annuities & Life segment offers diversification and shields it from the volatility integral to the core title insurance business. Assets under management are expected to have benefited from solid retail annuity sales and F&G's interest in institutional markets.
Fidelity National remains focused on technological development that drives growth and productivity.
Fidelity National has a solid balance sheet, which enables dividend payout, share buyback, mergers and acquisitions, organic growth initiatives and debt payment. This title insurer has increased dividends for the last 12 years at a nine-year CAGR of 12.2%. The dividend yield is 3.8%, better than the industry average of 0.3%.
Fidelity National is poised for progress, which is evident from its favorable VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum
Stocks to Consider
Some top-ranked stocks from the same space are CNA Financial CNA, The Progressive Corporation PGR and W.R. Berkley Corporation WRB, each sporting a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
CNA Financial delivered a trailing four-quarter average earnings surprise of 9.24%. The stock has lost 1.4% year to date.
The Zacks Consensus Estimate for CNA’s 2024 earnings indicates a 7.4% year-over-year increase. The expected long-term earnings growth rate is 5%. The consensus estimate for 2024 has moved 1.1% higher in the past 30 days.
Progressive delivered an earnings surprise in two of the last four reported quarters while missing in the other two. Year to date, the stock has gained 26.3%.
The Zacks Consensus Estimate for PGR’s 2024 earnings indicates a 49% year-over-year increase. The expected long-term earnings growth rate is 25.8%. The consensus estimate for PGR’s 2024 earnings has moved up 2.9% in the past 30 days.
W.R. Berkley delivered a trailing four-quarter average earnings surprise of 4.35%. Year to date, the stock has gained 0.9%.
The Zacks Consensus Estimate for WRB’s 2024 earnings implies a year-over-year rise of 20.2%. The consensus estimate has moved up 0.9% in the past 30 days.
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W.R. Berkley Corporation (WRB) : Free Stock Analysis Report
The Progressive Corporation (PGR) : Free Stock Analysis Report
CNA Financial Corporation (CNA) : Free Stock Analysis Report
Fidelity National Financial, Inc. (FNF) : Free Stock Analysis Report
