On Apr 11, 2013, shares of Fidelity National Financial,
Inc. ( FNF
) reached a 52-week high of $26.78.
Fidelity National has a consistent track record of acquisitions
and partnerships to strengthen its existing lines of businesses. On
Feb 25, the company announced the formation of a luxury restaurant
company, J. Alexander's LLC, targeting the upscale dining
The deal is expected to augment the existing upscale dining
oriented restaurant operations of Fidelity National. With the
formation of J. Alexander's LLC, the company aims to enhance its
upscale dining operations and hence maximize its overall value of
Earlier, on Feb 14, Digital Insurance - a wholly owned
subsidiary of Fidelity National - announced a partnership with CUNA
Mutual Group, a financial service provider dedicated to catering to
the members and customers of employee unions.
Fidelity National reported positive earnings surprises in all
four quarters of 2012 with an average beat of 18.06%. The company
is expected to report its first-quarter 2013 financial results
after the closing bell on May 1.
The valuation of Fidelity National's shares is attractive. The
shares are trading at a small premium to the peer group average on
a price-to-book basis and discount to the peer group average on a
forward price-to-earnings basis. The return on equity of 11.3% is
substantially higher than the peer group average of 8.0%.
Fidelity National currently carries a Zacks Rank #3 (Hold).
Other property and casualty insurers worth considering are
W.R. Berkley Corporation ( WRB ),
Cincinnati Financial Corp. ( CINF ) and
Everest Re Group Ltd. ( RE ), all of which carry
a Zacks Rank #1 (Strong Buy).CINCINNATI FINL (CINF): Free Stock Analysis
ReportFIDELITY NAT FI (FNF): Free Stock Analysis
ReportEVEREST RE LTD (RE): Free Stock Analysis ReportBERKLEY (WR) CP (WRB): Free Stock Analysis
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