U.S. Markets close in 4 hrs 27 mins
  • S&P 500

    3,776.69
    -18.85 (-0.50%)
     
  • Dow 30

    30,847.41
    -144.11 (-0.46%)
     
  • Nasdaq

    13,052.95
    -59.69 (-0.46%)
     
  • Russell 2000

    2,110.90
    -44.45 (-2.06%)
     
  • Crude Oil

    52.10
    -1.47 (-2.74%)
     
  • Gold

    1,824.50
    -26.90 (-1.45%)
     
  • Silver

    24.75
    -1.06 (-4.10%)
     
  • EUR/USD

    1.2102
    -0.0062 (-0.5083%)
     
  • 10-Yr Bond

    1.0970
    -0.0320 (-2.83%)
     
  • Vix

    24.40
    +1.15 (+4.95%)
     
  • GBP/USD

    1.3596
    -0.0044 (-0.3236%)
     
  • USD/JPY

    103.7800
    -0.0620 (-0.0597%)
     
  • BTC-USD

    36,078.79
    -1,759.85 (-4.65%)
     
  • CMC Crypto 200

    689.85
    -45.29 (-6.16%)
     
  • FTSE 100

    6,720.75
    -81.21 (-1.19%)
     
  • Nikkei 225

    28,519.18
    -179.08 (-0.62%)
     

Here's Why Fidelity National (FNF) is Up 26% in 6 Months

Zacks Equity Research
·3 min read

Fidelity National Financial FNF shares have gained 26.2% in six months compared with the industry's increase of 23.3% and the Finance sector’s increase of 22.7%. The Zacks S&P 500 composite has risen 22.6% in the said time frame. With market capitalization of $11.3 billion, average volume of shares traded in the last three months was 1.8 million.



Leading market share in the residential purchase, refinance, and commercial markets, efforts to diversify from core title insurance business, industry-leading margins and solid capital position continue to drive Fidelity National. The company has a solid history of delivering earnings surprise in the last seven reported quarters.

The company has been efficiently improving return on equity (ROE) since 2015. Its ROE of 20.1% in the trailing twelve months was better than the industry average of 5.6%, reflecting the company’s efficiency in utilizing shareholders’ fund.  

Will the Bull Run Continue?

The Zacks Consensus Estimate for 2021 earnings has moved up 11.1% in the past 60 days, reflecting analysts’ optimism. The consensus estimate indicates year-over-year increase of 0.6%.

This Zacks Rank #2 (Buy) largest title insurance and settlement services provider in the nation acquired FGL Holdings, a life and annuity insurance company in June 2020. The company estimates the acquisition to be more than 10% accretive to 2020 bottom line and more than 20% to 2021 bottom line. FGL Holdings is a leading provider of annuity and life insurance, concentrated in the middle-income market. This marks a strategic initiative to diversify from core title insurance business and lower risk and volatility integral to the core title insurance business.

The company boasts industry-leading margins. Given its continued focus on managing its expenses, we expect the momentum to continue.

Strategic investments in its digital platform by expanding the WireSafe and startSafe programs, enhancing core title production system technologies and integrations and advancing automated title and underwriting capabilities bode well.

Its balance sheet strength and sustained profitability of title business place the company well to take advantage of strategic opportunities.

Fidelity National has a solid track record of enhancing shareholder value. The title insurer has increased dividend for nine straight years and its dividend yield of 3.7% betters the industry average of 0.5%. It also targets $500 million of share repurchases over the next one-year period.

Other Stocks to Consider    

Investors interested in the same space can also look at Alleghany Y, The Hanover Insurance Group THG and The Allstate Corporation ALL.    

Alleghany delivered an earnings surprise of 195.85% in the last reported quarter. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank.

The Hanover Insurance Group delivered an earnings surprise of 9.85% in the last reported quarter. It currently carries a Zacks Rank #2.

Allstate delivered an earnings surprise of 66.10% in the last reported quarter. It currently carries a Zacks Rank #2.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
The Allstate Corporation (ALL) : Free Stock Analysis Report
 
Fidelity National Financial, Inc. (FNF) : Free Stock Analysis Report
 
The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report
 
Alleghany Corporation (Y) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research