Fidelity National Financial Inc.FNF’s dominant market share in the residential purchase, refinance and commercial markets, industry-leading margins and strong capital position make it worth keeping in your portfolio. This Zacks No. 3 Tier Title Underwriter (Hold) has an excellent track record of beating earnings estimates over the past 13 quarters.
Return on equity over the past 12 months was 24.6%, above the industry average of 5.8%, reflecting the efficient use of shareholders’ funds.
However, since the start of the year, the stock has lost 27.6% compared to the industry decline of 5.1%.
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Nonetheless, Zacks’ consensus estimate for 2023 revenue is pegged at $6.22, indicating a 2.5% increase. The company has a growth score of B. This style score analyzes a company’s growth prospects.
Business winds
Given the recovery in the U.S. real estate market, Fidelity National, which has leading market share in the residential purchase, refinance and commercial markets, is poised to benefit.
The acquisition of F&G Annuities & Life, a leading provider of annuities and life insurance focused on the middle-income market, provides Fidelity National with a diversified growth strategy and protects it from the volatility inherent in the principal activity of title insurance.
The nation’s largest title insurance and settlement services company is expected to continue to see momentum in refinancing volumes, strong buying demand and a rebound in commercial real estate activity. Market leadership position provides scale and competitive advantage by fueling revenue and reducing costs. The company has achieved some of the best margins in the industry.
Fidelity National remains focused on technology development that drives growth and productivity.
Fidelity National has a strong balance sheet, cushioning the payout of dividends, share buybacks, mergers and acquisitions, organic growth initiatives and debt payments. This title insurer has increased its dividends over the past 11 years at a nine-year CAGR of 12.1%. The dividend yield is 4.7%, above the sector average of 0.4%.
Fidelity National has an impressive VGM score of B.
Actions to Consider
Some top-ranked stocks in the P&C insurance industry are American financial group AFG, Chubb Limited BC and Everest Re Group RE.
The Zacks consensus estimate for American Financial Group’s 2022 and 2023 earnings has moved 9.8% and 7% over the past 60 days. It sports a Zacks Rank #1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.
Zacks’ consensus estimate for Chubb’s revenue in 2022 and 2023 indicates year-over-year increases of 19% and 10.7%. He wears a Zacks Rank #2 (Buy).
The Zacks consensus estimate for Everest Re Group’s 2022 and 2023 earnings implies a year-over-year increase of 18.3% and 17.6%. He wears a No. 2 Zacks rank.
Shares of AFG, CB and RE have gained 0.2%, 0.1% and 0.4% since the start of the year.
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Chubb Limited (CB): Free Stock Analysis Report
Everest Re Group, Ltd. (RE): Free Inventory Analysis Report
American Financial Group, Inc. (AFG): Free Stock Analysis Report
Fidelity National Financial, Inc. (FNF): Free Stock Analysis Report
