Yahoo Finance Fidelity National (FNF) Surges 45% in a Year: More Upside Left?
Fidelity National Financial’s FNF shares have gained 45.2% in a year, outperforming the industry’s increase of 27.1%, the Finance sector’s rise of 23.8% and the Zacks S&P 500 composite’s increase of 23.5% in the said time frame.
Its market-leading position, higher direct premiums, agency premiums, strong origination demand and effective capital deployment should continue to drive price appreciation for this Zacks Rank #3 (Hold) company. It has a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum
FNF’s return on equity in the trailing 12 months was 14.3%, better than the industry average of 7.8%, reflecting efficiency in utilizing shareholders’ funds.
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Can the Stock Retain the Momentum?
Fidelity National has a market-leading position in residential purchase, refinance and commercial markets that provides a scale advantage and has one of the largest and deepest real estate data networks. Real estate-related businesses complement its core title business. Its scale and volume fuel revenues and lower costs provide a competitive advantage.
The title insurer made a strategic move to buy F&G Annuities & Life, a leading provider of annuity and life insurance concentrated in the middle-income market, to shield itself from the volatility integral to the core title insurance business. The same also offers a diversified growth strategy. Expanded distribution channels and attractive spreads should drive sales at F&G Annuities & Life.
Assets under management are expected to have benefited from solid retail annuity sales and F&G's interest in institutional markets. F&G invests in a high-quality and well-diversified portfolio and its average assets under management growth drives earnings.
Fidelity National continues to make investments in technology to widen its market-leading position.
FNF’s balanced capital allocation aids in strategic investments in title technology and other strategic initiatives to support innovation and organic growth in the business.
A solid capital position supports capital payout, mergers and acquisitions, organic growth initiatives and debt payments. It distributes wealth to shareholders via dividends and share repurchases. Fidelity National has increased dividends at a 10-year CAGR of 9.7%. The dividend yield is 3.8%, better than the industry average of 0.3%.
The Zacks Consensus Estimate for FNF’s 2024 earnings is pegged at $4.73, indicating a 33.2% increase from the year-ago reported figure on 8.8% higher revenues of $12.8 billion. The consensus estimate for 2025 earnings is pegged at $5.64, indicating a 19.2% increase year over year on 9.6% higher revenues of $677.3 million. It has a Growth Score of B.
Stocks to Consider
Some top-ranked stocks from the insurance industry are HCI Group, Inc. HCI, Palomar Holdings PLMR and ProAssurance PRA, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HCI Group earnings surpassed estimates in each of the last four quarters, the average beat being 139.15%. In the past year, HCI has rallied 76.6%.
The Zacks Consensus Estimate for HCI’s 2024 and 2025 earnings implies 57.6% and 4.3% year-over-year growth, respectively.
Palomar’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 15.10%. In the past year, PLMR’s stock has surged 53.4%.
The Zacks Consensus Estimate for PLMR’s 2024 and 2025 earnings indicates 25.8% and 16.1% year-over-year growth, respectively.
ProAssurance earnings surpassed estimates in two of the last four quarters and missed in the other two. In the past year, PRA’s stock has surged 10.9%.
The Zacks Consensus Estimate for PRA’s 2024 and 2025 earnings suggests 371.4% and 71.6% year-over-year growth, respectively.
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ProAssurance Corporation (PRA) : Free Stock Analysis Report
Fidelity National Financial, Inc. (FNF) : Free Stock Analysis Report
HCI Group, Inc. (HCI) : Free Stock Analysis Report
Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report
