Are Investors Undervaluing Fidelity National Financial (FNF) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Fidelity National Financial (FNF). FNF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.64, while its industry has an average P/E of 26.61. Over the past year, FNF's Forward P/E has been as high as 13.53 and as low as 6.70, with a median of 9.14.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FNF has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.21.

Value investors will likely look at more than just these metrics, but the above data helps show that Fidelity National Financial is likely undervalued currently. And when considering the strength of its earnings outlook, FNF sticks out at as one of the market's strongest value stocks.

Top 5 Dividend Stocks for Your Retirement

Zacks targets 5 well-established companies with solid fundamentals and a history of raising dividends. More importantly, they have the resources and will to likely pay them in the future.

Click now for a Special Report packed with unconventional wisdom and insights you simply won’t get from your neighborhood financial planner.

See our Top 5 now – the report is FREE >>

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

Fidelity National Financial, Inc. (FNF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.