On Apr 11, 2013, shares of Fidelity National Financial, Inc. (FNF) reached a 52-week high of $26.78.
Fidelity National has a consistent track record of acquisitions and partnerships to strengthen its existing lines of businesses. On Feb 25, the company announced the formation of a luxury restaurant company, J. Alexander’s LLC, targeting the upscale dining segment.
The deal is expected to augment the existing upscale dining oriented restaurant operations of Fidelity National. With the formation of J. Alexander’s LLC, the company aims to enhance its upscale dining operations and hence maximize its overall value of restaurant operations.
Earlier, on Feb 14, Digital Insurance – a wholly owned subsidiary of Fidelity National – announced a partnership with CUNA Mutual Group, a financial service provider dedicated to catering to the members and customers of employee unions.
Fidelity National reported positive earnings surprises in all four quarters of 2012 with an average beat of 18.06%. The company is expected to report its first-quarter 2013 financial results after the closing bell on May 1.
The valuation of Fidelity National’s shares is attractive. The shares are trading at a small premium to the peer group average on a price-to-book basis and discount to the peer group average on a forward price-to-earnings basis. The return on equity of 11.3% is substantially higher than the peer group average of 8.0%.
Fidelity National currently carries a Zacks Rank #3 (Hold). Other property and casualty insurers worth considering are W.R. Berkley Corporation (WRB), Cincinnati Financial Corp. (CINF) and Everest Re Group Ltd. (RE), all of which carry a Zacks Rank #1 (Strong Buy).
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