Fidelity National Financial (FNF): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Monday, May 20, 2013

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
Fidelity National Financial FNF Property & Casualty Insurance 8.4 +8.53% $25.07

Why We Like The Stock:

Fidelity National Financial (FNF) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Like its competitors Markel Corp (MKL), Erie Indemnity Co (ERIE), and Old Republic Intl (ORI), FNF sports a solid intermediate-term uptrend and has had a pretty good year thus far. While it has underperformed the S&P 500 in 2013, FNF has a much more modest looking chart and has developed support levels through consolidation. In our minds, FNF would be a great short-term trading opportunity. It has held the line recently just above $25, which would be a low-risk stop price. It's potential upside in the short-term is right up at $27, which is +5.85% from current prices. We also note that analyst and institutional research has been positive on the financials sector leading into the summer months and providing the thrust for this bull market. If that is the case, and sector rotation into financials is the next big move, then FNF could be a great pick for more than just the short term gain back to $27.
We Would Be Buyers:

At the current price (~$25.50).

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Company Profile:

Fidelity National Financial, Inc. (FNF) is a holding company. FNF, through its subsidiaries, provides title insurance, mortgage services and diversified services. FNF operates in four segments: Fidelity National Title Group, Remy, Restaurant Group and Corporate and Other. The Fidelity National Title Group segment consists of the operations of FNF’s title insurance underwriters and related businesses. The Remy segment is a designer, manufacturer, remanufacturer, marketer and distributor of aftermarket and original equipment electrical components for automobiles, light trucks, heavy-duty trucks and other vehicles. The Restaurant Group segment consists of the operations of ABRH. The corporate and other segment consists of the operations of the holding company. In May 2012, it sold an 85% interest in its personal lines business to an affiliate of WT Holdings, Inc. In July 2012, the Company’s, ServiceLink, acquired Newport Beach. In December 2012, it acquired Digital Insurance, Inc.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  Fidelity National Financial - Last 3 Months

  Fidelity National Financial - Last 12 Months

  Fidelity National Financial - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

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The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: ERIE , FNF , MKL , ORI

David Moenning


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