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FNF Group (FNF) Gains But Lags Market: What You Should Know

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FNF Group (FNF) closed the most recent trading day at $38.20, moving +0.92% from the previous trading session. This change lagged the S&P 500's 0.99% gain on the day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.38%.

Coming into today, shares of the provider of title insurance and mortgage services had gained 5.31% in the past month. In that same time, the Finance sector gained 4.89%, while the S&P 500 gained 7.91%.

Investors will be hoping for strength from FNF Group as it approaches its next earnings release, which is expected to be August 2, 2022. On that day, FNF Group is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 20.87%. Our most recent consensus estimate is calling for quarterly revenue of $3.3 billion, down 14.45% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.07 per share and revenue of $13.34 billion, which would represent changes of -23.16% and -14.73%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for FNF Group. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FNF Group is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, FNF Group currently has a Forward P/E ratio of 6.24. Its industry sports an average Forward P/E of 12.8, so we one might conclude that FNF Group is trading at a discount comparatively.

The Insurance - Property and Casualty industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow FNF in the coming trading sessions, be sure to utilize Zacks.com.


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