Bull’s Eye Report: Fidelity National Financial (FNF)

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 (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).

Company Profile:

Fidelity National Financial, Inc.  is a holding company that provides title insurance, mortgage services and diversified services through its subsidiaries. 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: 8.4

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.

Fidelity National Financial – Last Three Months

FNF stock performance last 3 months

Fidelity National Financial – Last 12 Months

FNF performance last 12 months

Fidelity National Financial – Last Five Years

FNF performance last 5 years

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