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.
|First American Financial Corp||FAF||Property & Casualty Insurance||8.8||+3.86%||+3.86%|
Why We Like The Stock:
First American Financial (NYSE:FAF) 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. Much like its counterparts Old Republic International (NYSE:ORI), ProAssurance (NYSE:PRA), and Hanover Insurance Group (NYSE: THG), FAF has been trending higher in the intermediate-term and is an attractive short-term buy. The stock has recently pulled back from its mid-April highs at $27.34, quickly basing thereafter and turning around beautifully. This morning, FAF crossed back above its 10- and 18-day moving averages, and is poised for a run back up to recent highs. We like that FAF has been operating well above its 50-day moving average this month, and it looks to be a great opportunity at current prices.
We Would Be Buyers:
First American Financial Corporation, through its subsidiaries, is engaged in the business of providing financial services. The Company operates in two segments: title insurance and services and specialty insurance. The title insurance and services segment provides title insurance, closing and/or escrow services and similar or related services domestically and internationally in connection with residential and commercial real estate transactions. It also maintains, manages and provides access to title plant records and images and provides banking, trust and investment advisory services. The specialty insurance segment issues property and casualty insurance policies and sells home warranty products. In addition, its corporate function consists of certain financing facilities, as well as the corporate services that support its business operations.
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.
At the time of publication the editor and affiliated companies own the following positions: FAF
Note: Positions may be bought or sold while this publication is in circulation without notice.
First American Financial – Last 3 Months
First American Financial – Last 12 Months
First American Financial – Last 5 Years