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First American Financial NYSE: FAF reported third-quarter adjusted earnings of $1.78 per share, up 5% from a year earlier, as strength in commercial title operations and investment income helped offset continued weakness in residential real estate activity.

GAAP earnings were $1.72 per diluted share for the quarter. Chief Executive Officer Mark Seaton said National Commercial Services posted its highest third-quarter revenue on record, supported by broad-based activity across commercial property types and a fifth consecutive quarterly record in average revenue per order.

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Commercial activity included 22 transactions producing more than $1 million of premium each, compared with 12 in the prior-year period. Seaton said only six of those transactions involved data centers, with energy, industrial and multifamily properties also contributing to growth. Commercial refinance premium revenue rose 49% year over year.

Commercial Growth Offsets Residential Pressure Title segment revenue totaled $2 billion, up 7% from the third quarter of 2025. Commercial revenue increased 21% to $297 million, driven by a 13% gain in average revenue per order and a 7% rise in closed orders, Chief Financial Officer Matt Wajner said.

Residential trends remained difficult. Purchase revenue fell 3%, reflecting a 5% decline in closed orders that was partly offset by a 2% increase in average revenue per order. Refinance revenue declined 1%, as a 4% drop in average revenue per order outweighed a 3% increase in closed orders. Refinance represented only 5% of direct revenue during the quarter.

Seaton said the 30-year fixed mortgage rate had risen by about 100 basis points over the prior six months to 7.5%, its highest level since the second quarter of 2024. He said higher rates reinforced the company’s expectation of a “lower for longer” residential origination environment.

For the first three weeks of October, First American’s open purchase orders were down 8%, refinance orders were down 35%, and commercial orders were down 7%. Despite the order decline, Seaton said the company remained bullish on commercial activity in the fourth quarter, citing a strong pipeline and three transactions already closed with more than $1 million in premium each.

Wajner said the company currently expects 2027 revenue to be roughly flat with 2026. It anticipates modest commercial growth and declining residential purchase and refinance revenue, while investment income is expected to provide a tailwind. He said title pre-tax margins are expected to be generally stable next year, though they could face modest pressure if market conditions weaken.

Technology Rollout Focuses on Automation Management said it is using the slower residential environment to accelerate development and deployment of its AI-native title and settlement platforms, Endpoint and Sequoia.

During the quarter, the company launched the second wave of its Washington Endpoint pilot, expanding to additional users in the Seattle metropolitan area. The automation rate for tasks required to close a transaction rose to 42% in the third quarter, from 34% in the second quarter and 30% in the first quarter.

Seaton said First American intends to accelerate a national Endpoint rollout next year and aims to have a majority of direct-division revenue processed through the platform by the end of 2027. He described change management and employee training, rather than technology development, as the principal execution challenge because employees have used the company’s legacy FAST system for roughly 25 years.

Sequoia, the company’s instant title decisioning platform, expanded during the quarter to three additional Southern California counties for purchase transactions and 33 Northern California counties for refinance transactions. Sequoia completed 17% of California purchase transactions processed through Endpoint, up from 11% in the previous quarter, and completed 34% of California refinance transactions processed through the platform.

The average human review time for Sequoia purchase transactions fell to 56 minutes in the third quarter, compared with 74 minutes in the second quarter and 83 minutes in the first quarter. Seaton said Sequoia already reduces processing time by about two-thirds versus the traditional process. The company plans to expand Sequoia purchase capabilities across Northern California and into Florida during the fourth quarter.

Management’s longer-term goal is to automate about 80% of refinance transactions and 70% of purchase transactions in markets where First American maintains title plants. Seaton said the company expects to begin realizing incremental efficiencies as Sequoia expands, while more substantial benefits from the Endpoint and Sequoia initiatives could emerge in 2028 if next year’s rollout is executed successfully.

Investment Income and Bank Deposits Rise Title segment investment income rose 11% to $169 million, supported by higher deposit balances at First American Trust. Wajner said average deposits at the bank increased nearly 38% from the prior-year quarter, primarily due to deposits connected with ServiceMac and the company’s 1031 Exchange business.

First American Trust benefited from business outside the company’s captive title operations, including ServiceMac and 1031 Exchange balances. Seaton said the company has moved about $1 billion in 1031 Exchange deposits to the bank and is pursuing additional deposits from title agents. He said First American has moved approximately 95% of internal deposits that it can place with the bank.

Information and other revenue increased 6% to $292 million, largely due to a 31% increase in ServiceMac fee revenue related to growth in its loan portfolio. Personnel costs rose 6% to $574 million, while other operating expenses increased 11% to $306 million, driven primarily by software and production expenses.

Capital Actions and Other Segment Results The title segment generated a 12.4% pre-tax margin, or 12.7% on an adjusted basis. The provision for policy losses and other claims was $45 million, or 3% of title premiums and escrow fees, unchanged from a year earlier. Wajner said the company is reserving 3.75% for the current policy year, with releases from prior-year reserves reducing the reported rate to 3%.

Home Warranty revenue was flat at $115 million, while pre-tax income fell 30% to $11 million, primarily because of higher marketing spending aimed at expanding the direct-to-consumer channel.

First American raised its common dividend 11% during the quarter to an annualized rate of $2.44 per share. The company repurchased 23,000 shares for $1 million during the third quarter and repurchased another 143,000 shares for $9 million in October through the date of the call.

About First American Financial (NYSE:FAF)First American Financial Corporation NYSE: FAF is a provider of title insurance, settlement services and financial technology solutions for the real estate and mortgage industries. Through its First American Title operations, the company helps protect property owners, lenders and other parties against title defects and related risks during real estate transactions.

The company's services include title searches and examination, title insurance policies, escrow and closing services, and transaction coordination.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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SANTA ANA, Calif.--(BUSINESS WIRE)--First American Financial Corporation (NYSE: FAF), a premier provider of title, settlement and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today announced financial results for the third quarter ended Sept. 30, 2026. Current Quarter Highlights Earnings per diluted share of $1.72, or $1.78 per share on an adjusted basis Net investment losses of $2 million, or 1 cent per diluted share Purchase-related.

First American's commercial title strength, data-center opportunities, AI adoption and Trust growth support its outlook despite residential market headwinds.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

First American Financial (FAF - Free Report) is a stock many investors are watching right now. FAF is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.43. This compares to its industry's average Forward P/E of 26.59. Over the past 52 weeks, FAF's Forward P/E has been as high as 15.32 and as low as 9.75, with a median of 11.61.

We should also highlight that FAF has a P/B ratio of 1.31. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.41. FAF's P/B has been as high as 1.43 and as low as 1.08, with a median of 1.29, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FAF has a P/S ratio of 0.78. This compares to its industry's average P/S of 1.36.

These are just a handful of the figures considered in First American Financial's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FAF is an impressive value stock right now.

First American Celebrates a Decade as One of the Best Workplaces in Financial Services & Insurance™, According to Great Place to Work® and Fortune First American Financial Corporation (NYSE: FAF), a premier provider of title, settlement and risk solutions for real estate transactions and the leader in the digital transformation of its industry, announced today that Great Place to Work® and Fortune have recognized First American as one of the Best Workplaces in Financial Services & Insurance™ for the tenth consecutive year.

"Earning this recognition for 10 straight years is a reflection of the outstanding people who work at First American," said Mark Seaton, CEO of First American Financial Corporation. "Our people show up for one another, for our customers and for the communities we serve, and they do it with the commitment, teamwork and integrity that define our culture. This honor belongs to them, and I'm proud to celebrate this decade of recognition together."

The Best Workplaces in Financial Services & Insurance list is highly competitive. Great Place to Work, the global authority on workplace culture, determines the list based on analysis of confidential survey responses from more than 194,000 employees at Great Place to Work-Certified™ companies in the financial services and insurance industry. Honorees were selected based on their ability to offer positive outcomes for employees regardless of job role, work status, or other demographic identifier.

“Congratulations to the Fortune Best Workplaces in Financial Services & Insurance,” said Michael C. Bush, CEO of Great Place to Work. “People are the heart of work in every industry, and finance is no exception. These companies show how delivering for your people drives financial performance and turns fear of future into the confidence to win.”

Additional Workplace Culture Recognition

Earlier this year, First American was named one of the 100 Best Companies to Work For by Great Place to Work® and Fortune Magazine for the eleventh consecutive year. In 2025, First American marked a decade as one of the Fortune Best Workplaces for Women™ and was recognized as one of the 2025 PEOPLE® Companies that Care. The company was also named one of the Fortune Best Workplaces for Parents™ and a 2026 Military Friendly® Employer.

The company’s Canadian subsidiary, FCT, has been named by Great Place to Work to the “Best Workplaces™ in Canada – 1000+ Employees” list for the past 12 years. First American’s Indian subsidiary, FAI, was recognized among India’s Top 50 Best Workplaces for the first time in 2026 and was also named among India’s Top 100 Best Workplaces for Women (large companies).

About First American

First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement, and risk solutions for real estate transactions. With its combination of financial strength and stability built over more than 135 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.5 billion in 2025, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2026, First American was named one of the 100 Best Companies to Work For by Great Place to Work® and Fortune Magazine for the eleventh consecutive year. More information about the company can be found at www.firstam.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261006083724/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Headquartered in Santa Ana, First American Financial (FAF - Free Report) is a Finance stock that has seen a price change of 1.71% so far this year. The financial services company is paying out a dividend of $0.61 per share at the moment, with a dividend yield of 3.9% compared to the Insurance - Property and Casualty industry's yield of 0.95% and the S&P 500's yield of 1.45%.

Looking at dividend growth, the company's current annualized dividend of $2.44 is up 11.9% from last year. Over the last 5 years, First American Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 3.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. First American Financial's current payout ratio is 31%, meaning it paid out 31% of its trailing 12-month EPS as dividend.

FAF is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $7.12 per share, with earnings expected to increase 17.69% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FAF is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

SANTA ANA, Calif.--(BUSINESS WIRE)--First American Data & Analytics, a leading national provider of property-centric information, risk management and valuation solutions and a division of First American Financial Corporation (NYSE: FAF), today released its August 2026 Home Price Index (HPI) report, finding U.S. home prices nationally increased 1.4 percent year over year. The report tracks home price changes less than four weeks behind real time at the national, state and metropolitan (Core-.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is First American Financial (FAF - Free Report) . FAF is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.43, which compares to its industry's average of 26.87. Over the past year, FAF's Forward P/E has been as high as 15.32 and as low as 9.75, with a median of 11.61.

Another notable valuation metric for FAF is its P/B ratio of 1.31. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.43. Over the past 12 months, FAF's P/B has been as high as 1.43 and as low as 1.08, with a median of 1.29.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FAF has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.3.

These are just a handful of the figures considered in First American Financial's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FAF is an impressive value stock right now.

Key Takeaways First American increased its quarterly dividend 11% to 61 cents per share. The company had $239.4 million in cash and $900 million available on its revolving credit facility. First American repurchased 0.9 million shares for $54 million in the first half of 2026. First American Financial Corporation (FAF - Free Report) recently announced a substantial increase in its quarterly cash dividend, underscoring its commitment to rewarding shareholders. The move reflects confidence in First American’s business prospects and its continued commitment to returning capital to shareholders.

Approved by the board of directors, the quarterly cash dividend has now been increased to 61 cents per share of common stock from 55 cents. This increase represents a remarkable 11% rise over the previously declared rate. This move is a testament to the insurer’s strong financial position and long-term growth prospects.

Based on the stock’s Sept. 16 closing price of $71.11, the new dividend will yield 3.1%, which is better than the industry average of 0.2%. Also, the payout ratio of 30.99 compares favorably with the industry average of 10.43. This makes First American an attractive pick for yield-seeking investors. Shareholders of record on Sept. 28 will receive the increased dividend on Oct. 5.

Historically, FAF has a solid track record of dividend increases, with the metric witnessing a nine-year (2018-2026) CAGR of 5.4%.

Financial Strength and Capital ManagementFAF remains committed to returning capital to shareholders through a combination of dividends and opportunistic share repurchases and expects to continue increasing dividends over time, reflecting confidence in the company's long-term earnings growth.

First American maintains a stock repurchase plan with authorization up to $300 million of the company’s common stock, of which $246 million remained as of June 30, 2026. During the six months ended June 30, 2026, the company repurchased and retired 0.9 million shares of its common stock for a total purchase price of $54 million.

The dividend hike and the increase in repurchase authorization reflect the insurer’s strong financial condition, liquidity, and long-standing commitment to returning capital to stockholders. First American enjoys a strong liquidity position to enhance operating leverage. Its strong liquidity not only mitigates balance sheet risks but also paves the way for accelerated capital deployment.

As of June 30, 2026, the holding company’s liquidity sources included $239.4 million of cash and cash equivalents and $900 million available on the company’s revolving credit facility. Management believes the holding company’s liquidity is sufficient to meet anticipated cash requirements and obligations for at least the next 12 months.

Return on equity, a profitability measure of how efficiently a company utilizes its shareholders' money, was 13.3% in the trailing 12 months, which compared favorably with the industry average of 7.5%.

Robust operational performance, solid investment performance and strong capital management are likely to help FAF in sustaining the dividend streak.

Zacks Rank and Price PerformanceShares of this Zacks Rank #3 (Hold) title insurer have gained 15.7% year to date, outperforming the industry’s growth of 4%. FAF’s policy of ramping up growth and capital position should help the stock retain momentum.

Image Source: Zacks Investment Research

Other Insurers on the Same PathAmerican Financial Group (AFG - Free Report) announced a substantial increase in its annual common stock dividend in August 2026. Approved by the board of directors, the regular annual dividend has now been increased to $3.88 per share of common stock from $3.52. This increase represents a remarkable 10.2% rise over the previously declared rate. Effective October 2026, the increased dividend will be paid quarterly at 97 cents per share of common stock. The latest hike marks the 21st consecutive year of dividend increases.

AFG's compelling and diversified mix of specialty insurance businesses, entrepreneurial culture, disciplined operating philosophy and an astute team of in-house investment professionals continue to position it to create value for shareholders through a variety of insurance market conditions.

Unum Group (UNM - Free Report) is reinforcing its commitment to shareholder returns with a new $1 billion share repurchase authorization. Approved by the board of directors on Aug. 26, 2026, the program will begin on Sept. 1, 2026, immediately following the expiration of the company's existing repurchase program on Aug. 31, 2026. Under the new authorization, Unum can repurchase up to $1 billion of its common stock from time to time, with the timing and amount determined by management based on market conditions and other considerations.

The buyback should be considered within UNM's broader capital-allocation framework. UNM continues to balance share repurchases, dividends, investments in its businesses, and capital requirements associated with its insurance operations.

Another Stock to ConsiderA better-ranked stock from the property and casualty insurance industry is Mercury General Corporation (MCY - Free Report) , which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Mercury General’s earnings surpassed estimates in each of the last four quarters, the average surprise being 70.21%. Shares of MCY have jumped 8.4% in the year-to-date period. The Zacks Consensus Estimate for MCY’s 2026 earnings implies year-over-year growth of 61.3%.

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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

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Stock to Watch: First American Financial (FAF - Free Report) Headquartered in Santa Ana, CA, First American Financial Corporation, through its subsidiaries, provides title insurance, settlement services and other financial services and risk solutions to homeowners and lenders. Its revenues are reported under the title insurance and services segment and the home warranty segment.

FAF is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Finance stock. FAF has a Momentum Style Score of B, and shares are up 0.5% over the past four weeks.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.35 to $7.11 per share. FAF boasts an average earnings surprise of +23.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, FAF should be on investors' short list.

California State Teachers Retirement System grew its stake in shares of First American Financial Corporation (NYSE:FAF – Free Report) by 6,303.4% in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 7,712,808 shares of the insurance provider’s stock after acquiring an additional 7,592,360 shares during the period. California State Teachers Retirement System owned about 7.55% of First American Financial worth $529,022,000 at the end of the most recent quarter.

Other large investors have also recently modified their holdings of the company. GAMMA Investing LLC boosted its stake in shares of First American Financial by 9.6% during the second quarter. GAMMA Investing LLC now owns 1,696 shares of the insurance provider’s stock valued at $116,000 after purchasing an additional 148 shares in the last quarter. Equitable Trust Co. increased its holdings in shares of First American Financial by 2.3% in the 1st quarter. Equitable Trust Co. now owns 6,980 shares of the insurance provider’s stock valued at $421,000 after acquiring an additional 160 shares during the period. Sanctuary Advisors LLC increased its holdings in shares of First American Financial by 6.7% in the 1st quarter. Sanctuary Advisors LLC now owns 3,956 shares of the insurance provider’s stock valued at $239,000 after acquiring an additional 248 shares during the period. Meeder Asset Management Inc. raised its position in shares of First American Financial by 0.7% in the 1st quarter. Meeder Asset Management Inc. now owns 40,934 shares of the insurance provider’s stock worth $2,468,000 after acquiring an additional 297 shares in the last quarter. Finally, Truist Financial Corp lifted its stake in shares of First American Financial by 3.0% during the 4th quarter. Truist Financial Corp now owns 12,012 shares of the insurance provider’s stock worth $738,000 after purchasing an additional 345 shares during the last quarter. Hedge funds and other institutional investors own 89.05% of the company’s stock.

Insider Activity In other First American Financial news, CAO Steven Adams sold 3,253 shares of First American Financial stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $74.99, for a total transaction of $243,942.47. Following the completion of the sale, the chief accounting officer directly owned 10,234 shares in the company, valued at $767,447.66. This trade represents a 24.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 3.50% of the company’s stock.

Analysts Set New Price Targets Several equities research analysts have recently commented on the stock. Benchmark began coverage on shares of First American Financial in a research note on Tuesday, July 21st. They set a “buy” rating and a $85.00 price objective for the company. Keefe, Bruyette & Woods upped their target price on First American Financial from $84.00 to $86.00 and gave the company an “outperform” rating in a research report on Friday, July 24th. Barclays raised their target price on First American Financial from $80.00 to $83.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 7th. Stephens reaffirmed an “overweight” rating and set a $84.00 price target on shares of First American Financial in a research report on Friday, June 12th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of First American Financial in a research note on Monday, July 20th. Seven analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $84.60. View Our Latest Report on First American Financial

First American Financial Stock Performance Shares of NYSE FAF opened at $73.16 on Tuesday. The firm has a fifty day moving average of $73.00 and a 200 day moving average of $68.46. The firm has a market cap of $7.47 billion, a PE ratio of 10.13, a PEG ratio of 0.66 and a beta of 1.21. First American Financial Corporation has a one year low of $56.20 and a one year high of $79.87.

First American Financial (NYSE:FAF – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.80 by $0.28. First American Financial had a return on equity of 13.31% and a net margin of 9.33%.The firm had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.03 billion. During the same period in the previous year, the company posted $1.53 earnings per share. The business’s revenue was up 15.0% on a year-over-year basis. On average, equities analysts predict that First American Financial Corporation will post 7.11 EPS for the current fiscal year.

First American Financial Company Profile (Free Report)

First American Financial Corporation (NYSE: FAF) provides title insurance, settlement services and risk solutions for real estate transactions. Through its title insurance operations, the company protects property buyers, lenders and other parties against certain losses arising from defects in ownership records, liens and other title-related issues.

The company also offers escrow and closing services, real estate data and analytics, valuation products, and technology solutions designed to support mortgage lenders, real estate professionals, homebuilders and commercial property participants.

Recommended Stories Five stocks we like better than First American Financial Analysts Are Punting Their Calls Into the Next Quarter After Adobe’s Mixed Earnings Institutional Money Is Pouring Into These 2 Altcoin ETFs The End of Big Tech Buybacks? Only One Hyperscaler Is Still Repurchasing Shares 3 Dividend Kings to Buy While They’re Still Beaten Down Want to see what other hedge funds are holding FAF? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for First American Financial Corporation (NYSE:FAF – Free Report).

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SANTA ANA, Calif.--(BUSINESS WIRE)--First American Title Insurance Company, a leading provider of title insurance and settlement services and the largest subsidiary of First American Financial Corporation (NYSE: FAF), today announced that its policy-issuing title agents can now offer their eligible clients a property title monitoring and fraud alert service at no additional cost when their residential owner's title insurance policy is underwritten by First American Title. Earlier this year, Fir.

SANTA ANA, Calif.--(BUSINESS WIRE)--First American Financial Corporation (NYSE: FAF), a premier provider of title, settlement, and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today published the 150th episode of The REconomy Podcast™, reaching the milestone nearly six years after it was launched. Designed to deliver economic insights for real estate professionals and anyone interested in real estate and related economic issues in und.

Key Takeaways FAF's purchase revenues rose just 2% as closed orders declined 3% in Q2 2026.Commercial revenue jumped 34% to $314 million, helping offset weakness in residential activity.Lower mortgage rates could boost housing activity, title orders and FAF's revenue and earnings. First American Financial Corporation (FAF - Free Report) continues to face pressure from the housing environment as elevated mortgage rates weigh on residential activity. The 30-year fixed mortgage rate averaged 6.66% as of Aug. 27, up from 6.56% a year earlier.

The impact is visible in FAF’s residential title business. In the second quarter of 2026, purchase revenues increased only 2%, as a 6% rise in average revenues per order was partly offset by a 3% decline in closed orders. Refinance revenues rose 18% following a temporary decline in mortgage rates early in the year, but volumes moderated as rates moved higher, according to management. Purchase open orders were flat year over year through the first three weeks of July, indicating subdued housing activity.

Still, commercial title activity is helping offset residential weakness. In the second quarter, commercial revenues increased 34% to $314 million. Higher revenues per transaction are also helping offset softer residential activity. Commercial open orders rose 9% year over year through the first three weeks of July, indicating continued momentum.

Meanwhile, strong investment performance provided another earnings tailwind. Adjusted net investment income increased 11.4% to a record $1.88 billion in the second quarter, supported by fixed-income and alternative asset portfolios.

A decline in mortgage rates remains a key potential catalyst. Lower borrowing costs could improve housing affordability, increase real estate transactions and boost title orders, supporting FAF’s revenues and earnings.

What About Its Peers?Stewart Information Services (STC - Free Report) is navigating weak residential activity. Management expects existing-home sales growth of only about 2% in 2026, down from its earlier 6-8% expectation, reflecting the impact of higher interest rates. However, commercial activity remains stronger, with domestic commercial revenues up 20% and closed orders rising 21% in the second quarter.

Fidelity National Financial (FNF - Free Report) is also facing pressure in residential housing. Higher mortgage rates and low transaction volumes continue to weigh on its Title business. However, adjusted pretax title earnings rose 33% year over year to $448 million, while the adjusted margin improved to 17.8%.

FAF’s Price PerformanceShares of FAF have gained 14.3% in the past year, outperforming the industry’s growth of 1.4%.

 

Image Source: Zacks Investment Research

FAF’s UndervaluationThe stock is undervalued compared with its industry. It is currently trading at a price-to-book value multiple of 1.33, lower than the industry average of 1.42. It carries a Value Score of A.

Image Source: Zacks Investment Research

Estimate Movement for FAFThe Zacks Consensus Estimate for First American’s 2026 revenues are pegged at $8.2 billion, indicating a year-over-year increase of 9.5%.

The consensus estimate for FAF’s 2026 earnings per share (EPS) indicates a year-over-year increase of 17.5%.

The consensus estimate for 2027 revenues and EPS indicates an increase of 7.2% and 4.2%, respectively, from the corresponding 2026 estimates.

The Zacks Consensus Estimate for 2026 and 2027 earnings has moved north 1.3% and 0.8%, respectively, over the past 30 days.

Image Source: Zacks Investment Research

FAF stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is First American Financial (FAF - Free Report) . FAF is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.43 right now. For comparison, its industry sports an average P/E of 26.82. Over the past year, FAF's Forward P/E has been as high as 15.32 and as low as 9.75, with a median of 11.61.

Another notable valuation metric for FAF is its P/B ratio of 1.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.43. Over the past 12 months, FAF's P/B has been as high as 1.43 and as low as 1.08, with a median of 1.29.

Value investors also use the P/S ratio. The P/S ratio 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. FAF has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.35.

Investors could also keep in mind United Fire Group (UFCS - Free Report) , another Insurance - Property and Casualty stock with a Zacks Rank of #2 (Buy) and Value grade of A.

Additionally, United Fire Group has a P/B ratio of 0.94 while its industry's price-to-book ratio sits at 1.43. For UFCS, this valuation metric has been as high as 1.02, as low as 0.62, with a median of 0.87 over the past year.

These are just a handful of the figures considered in First American Financial and United Fire Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FAF and UFCS is an impressive value stock right now.

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in Santa Ana, First American Financial (FAF - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 21.34%. Currently paying a dividend of $0.55 per share, the company has a dividend yield of 2.95%. In comparison, the Insurance - Property and Casualty industry's yield is 0.9%, while the S&P 500's yield is 1.32%.

Looking at dividend growth, the company's current annualized dividend of $2.20 is up 0.9% from last year. Over the last 5 years, First American Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 3.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. First American Financial's current payout ratio is 31%, meaning it paid out 31% of its trailing 12-month EPS as dividend.

FAF is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $7.11 per share, with earnings expected to increase 17.52% from the year ago period.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, FAF is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

First American Home Warranty, a subsidiary of First American Financial Corporation and one of the nation’s leading home warranty companies, today announced that Jason Gritters has joined the company as Chief Revenue Officer (CRO).

In this newly created executive role, Gritters will lead First American Home Warranty’s real estate line of business and corporate development function, while helping identify and advance new revenue opportunities that complement the company’s core home warranty business. His responsibilities include driving alignment and growth across the company’s real estate sales organization, strengthening strategic partnerships and distribution opportunities, and advancing initiatives designed to create additional value for customers, partners and the company.

“Jason brings a unique combination of deep home warranty experience, home services industry expertise and a strong track record of developing offerings and executing growth strategies,” said Matt Wendl, CEO of First American Home Warranty. “As we continue to strengthen our core business and pursue new opportunities for growth, Jason will play an important role in bringing greater alignment across our real estate organization, corporate development efforts and emerging revenue initiatives. His strategic perspective, industry relationships and ability to translate opportunities into action will help us build on First American Home Warranty’s strong foundation and position the company for continued long-term growth.”

Gritters brings more than 10 years of leadership experience across the home warranty and home services industries. He most recently served as vice president of product and corporate development at 2-10 Home Buyers Warranty, where his responsibilities included leadership of the real estate business channel, product, sales operations, enterprise strategy and growth initiatives and strategic partnerships. Gritters' experience also includes developing go-to-market programs, brokerage partnerships, sales operations, customer relationship management strategies and acquisition marketing programs serving both real estate professionals and homeowners.

Earlier in his career, Gritters held leadership roles across finance, product management and business operations and worked in private equity, where he supported portfolio companies in accelerating growth. This broad experience across strategy, operations, product development and investment provides a strong foundation for his expanded responsibilities at First American Home Warranty.

Gritters earned his Bachelor of Science in Finance from Colorado State University and his Master of Business Administration from the University of Denver.

About First American Home Warranty

Established in 1984, First American Home Warranty has provided quality protection for homeowners across the nation, through more than 10 million home warranties, for more than 40 years. Today, First American's home warranty products continue to offer homeowners important coverage to protect their budgets from unexpected costs for repairing or replacing home systems and appliances. For more information, visit homewarranty.firstam.com.

About First American

First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement, and risk solutions for real estate transactions. With its combination of financial strength and stability built over more than 135 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.5 billion in 2025, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2026, First American was named one of the 100 Best Companies to Work For by Great Place to Work® and Fortune Magazine for the eleventh consecutive year. More information about the company can be found at www.firstam.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260824447314/en/

BlackRock Inc. acquired a new stake in First American Financial Corporation (NYSE:FAF – Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 9,382,850 shares of the insurance provider’s stock, valued at approximately $643,570,000. BlackRock Inc. owned approximately 9.19% of First American Financial at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of FAF. Boston Partners boosted its position in shares of First American Financial by 8.9% in the third quarter. Boston Partners now owns 6,133,594 shares of the insurance provider’s stock valued at $393,690,000 after acquiring an additional 500,649 shares during the period. Northwestern Mutual Wealth Management Co. increased its position in First American Financial by 4,485,375.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 5,786,263 shares of the insurance provider’s stock worth $355,508,000 after acquiring an additional 5,786,134 shares during the period. Dimensional Fund Advisors LP increased its position in First American Financial by 5.6% during the first quarter. Dimensional Fund Advisors LP now owns 4,636,464 shares of the insurance provider’s stock worth $279,529,000 after acquiring an additional 245,279 shares during the period. Capital Research Global Investors raised its stake in First American Financial by 3.3% in the 4th quarter. Capital Research Global Investors now owns 3,415,825 shares of the insurance provider’s stock worth $209,868,000 after purchasing an additional 109,242 shares in the last quarter. Finally, Geode Capital Management LLC raised its stake in First American Financial by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 1,793,179 shares of the insurance provider’s stock worth $110,200,000 after purchasing an additional 19,752 shares in the last quarter. Institutional investors and hedge funds own 89.05% of the company’s stock.

Insider Activity at First American Financial In other news, CAO Steven A. Adams sold 3,253 shares of the stock in a transaction on Friday, July 24th. The stock was sold at an average price of $74.99, for a total value of $243,942.47. Following the completion of the transaction, the chief accounting officer directly owned 10,234 shares in the company, valued at approximately $767,447.66. This represents a 24.12% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 3.50% of the company’s stock.

Wall Street Analysts Forecast Growth Several research analysts have recently commented on the stock. Weiss Ratings reaffirmed a “buy (b)” rating on shares of First American Financial in a report on Monday, July 20th. Keefe, Bruyette & Woods boosted their price target on First American Financial from $84.00 to $86.00 and gave the company an “outperform” rating in a research note on Friday, July 24th. Stephens reissued an “overweight” rating and set a $84.00 price target on shares of First American Financial in a research report on Friday, June 12th. Benchmark started coverage on First American Financial in a report on Tuesday, July 21st. They issued a “buy” rating and a $85.00 price objective for the company. Finally, Wall Street Zen downgraded First American Financial from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Seven research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, First American Financial currently has a consensus rating of “Moderate Buy” and an average price target of $84.60. Check Out Our Latest Stock Report on First American Financial

First American Financial Price Performance FAF stock opened at $71.78 on Monday. The stock has a market cap of $7.33 billion, a price-to-earnings ratio of 9.94, a P/E/G ratio of 0.66 and a beta of 1.22. The company has a 50 day simple moving average of $71.45 and a 200 day simple moving average of $67.70. First American Financial Corporation has a 1 year low of $56.20 and a 1 year high of $79.87.

First American Financial (NYSE:FAF – Get Free Report) last issued its earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share for the quarter, beating analysts’ consensus estimates of $1.80 by $0.28. The firm had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.03 billion. First American Financial had a net margin of 9.33% and a return on equity of 13.31%. The company’s quarterly revenue was up 15.0% on a year-over-year basis. During the same quarter last year, the business posted $1.53 earnings per share. On average, equities research analysts anticipate that First American Financial Corporation will post 7.11 EPS for the current fiscal year.

First American Financial Company Profile (Free Report)

First American Financial Corporation is a leading provider of title insurance, settlement services and diversified real estate-related data and analytics. Headquartered in Santa Ana, California, the company serves customers throughout the United States as well as in Canada, Europe, Latin America and Asia. Its business is built on the underwriting capabilities of its title insurance operations combined with comprehensive closing and escrow services for homebuyers, sellers, mortgage lenders and real estate professionals.

The company’s title insurance segment issues policies that protect property owners and mortgage lenders against defects in titles, liens or encumbrances that can arise during real property transactions.

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Key Takeaways Home Warranty revenues rose 3% to $113.8 million, while pretax income increased 9% to $24.2 million. The segment's pretax margin grew 21.3%, supported by favorable claims experience and lower claim frequency. Renewal-based warranty policies offer recurring revenues that cushions FAF when real estate activity weakens. First American Financial Corporation’s (FAF - Free Report) Home Warranty business can support long-term growth by providing recurring revenues, strong profitability and greater earnings diversification beyond its cyclical title-insurance operations.

Home Warranty generates relatively recurring revenues from customers seeking protection against unexpected home-system and appliance repair costs. This provides FAF with a more stable earnings stream than its transaction-sensitive title business. In the second quarter of 2026, Home Warranty generated $113.8 million of revenues, up 3% year over year, while pretax income increased 9% to $24.2 million. The pretax margin improved to 21.3% from 20.2%, reflecting solid profitability.

The segment’s claims experience also remains favorable. Its claim loss rate declined to 40% from 41% in the second quarter of 2026, primarily due to lower claim frequency, although higher claim severity partly offset the improvement. Continued control over claim frequency and severity should be important for maintaining margins.

Home Warranty also strengthens FAF’s business diversification by expanding its exposure to the broader homeownership and home-maintenance ecosystem, rather than relying primarily on real-estate transactions. When housing activity or mortgage originations weaken, the segment can help cushion FAF’s earnings because its revenues are not directly dependent on title order volumes.

Furthermore, renewal-based warranty policies can provide a more predictable source of revenue between real-estate transaction cycles. This recurring earnings stream can complement FAF’s title-insurance operations and improve the overall resilience of its business model.
Overall, Home Warranty could become an increasingly important stabilizing earnings engine for FAF. Its recurring revenues, strong margins and favorable claims trends can help offset volatility in the title business and support sustainable long-term profitability, provided FAF continues to manage claim costs effectively.

What About Other Players?    Fidelity National Financial, Inc. (FNF - Free Report) operates its Home Warranty business through Fidelity National Home Warranty, which protects against unexpected repair or replacement costs for major home appliances and systems. Home Warranty is included within FNF’s Title segment, alongside title insurance, escrow and other title-related services. The business also complements FNF’s core real-estate operations by providing an additional service to homeowners and real-estate customers.

Old Republic International Corporation (ORI - Free Report) operates its Home Warranty business through Old Republic Home Warranty, a subsidiary that has been part of ORI since 1982. The business provides home warranty plans that cover the repair or replacement of major home systems and appliances when they fail because of normal wear and use, including heating, air conditioning, plumbing, electrical systems and kitchen appliances. The business serves both homeowners and real-estate professionals, making its warranties particularly relevant during home-buying and selling transactions. It also offers optional coverage that allows customers to tailor plans to their specific needs.

FAF’s Price PerformanceShares of FAF have gained 8.3% in the past year, outperforming the industry.

Image Source: Zacks Investment Research

FAF’s UndervaluationThe stock is undervalued compared with its industry. It is currently trading at a price-to-book value multiple of 1.3, lower than the industry average of 1.41. It carries a Value Score of A.

Image Source: Zacks Investment Research

Estimate Movement for FAFThe Zacks Consensus Estimate for FAF’s third-quarter and fourth-quarter 2026 EPS has moved up 6.8% and 2.8%, respectively, in the past 30 days. The same for the full-year 2026 and 2027 EPS has moved up 5.5% and 3.6%, respectively, in the past 30 days.

Image Source: Zacks Investment Research

Key Takeaways EV-to-EBITDA offers a fuller view of valuation by accounting for debt, unlike traditional P/E ratios.AMCX, LCUT, OPHC, ENS and FAF are screened as value stocks with low EV-to-EBITDA ratios.Each stock meets strict criteria, including valuation, trading volume, price, growth, and Value Score. The price-to-earnings (P/E) multiple enjoys widespread popularity among investors seeking stocks trading at a bargain. In addition to being a widely used tool for screening stocks, P/E is a popular metric for working out the fair market value of a firm. However, even this straightforward, broadly used valuation metric has a few shortcomings.

While P/E enjoys great popularity among value investors, a less-used and more complicated metric called EV-to-EBITDA is sometimes viewed as a better alternative. EV-to-EBITDA provides a clearer view of a company’s valuation and earnings-generating potential by taking a broader approach to assessing value.

AMC Global Media Inc. (AMCX - Free Report) , Lifetime Brands, Inc. (LCUT - Free Report) , OptimumBank Holdings, Inc. (OPHC - Free Report) , EnerSys (ENS - Free Report) and First American Financial Corporation (FAF - Free Report) are some stocks with impressive EV-to-EBITDA ratios.

Why EV-to-EBITDA is a Better Alternative?EV-to-EBITDA is essentially the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company’s market capitalization, its debt and preferred stock minus cash and cash equivalents. EBITDA, the other component of the multiple, gives a better idea of a company’s profitability as it removes the impact of non-cash expenses like depreciation and amortization that reduce net earnings. It is also often used as a proxy for cash flows.

Just like P/E, the lower the EV-to-EBITDA ratio, the more attractive it is. A low EV-to-EBITDA ratio could signal that a stock is potentially undervalued. EV-to-EBITDA takes into account the debt on a company’s balance sheet that P/E ratio does not. For this reason, EV-to-EBITDA is generally used to value the potential acquisition targets as it shows the amount of debt the acquirer has to assume. Stocks boasting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.

P/E can’t be used to value a loss-making firm. A firm’s earnings are also subject to accounting estimates and management manipulation. In contrast, EV-to-EBITDA is harder to manipulate and can be used to value companies that have negative net earnings but are positive on the EBITDA front. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. It can also be used to compare companies with different levels of debt.

But EV-to-EBITDA has its shortcomings, too. The ratio varies across industries (a high-growth industry typically has a higher multiple and vice versa). It is usually not appropriate when comparing stocks from different industries, given their diverse capital requirements.

A strategy solely based on EV-to-EBITDA might not yield the desired results. However, you can club it with the other major ratios in your stock-investing toolbox, such as price-to-book (P/B), P/E and price-to-sales (P/S) to screen value stocks.

Screening CriteriaHere are the parameters to screen for value stocks:

EV-to-EBITDA 12 Months-Most Recent less than X-Industry Median: A lower EV-to-EBITDA ratio represents a cheaper valuation.

P/E using (F1) less than X-Industry Median: This metric screens stocks that are trading at a discount to their peers.

P/B less than X-Industry Median: A lower P/B compared with the industry average implies that the stock is undervalued.

P/S less than X-Industry Median: The lower the P/S ratio, the more attractive the stock is, as investors will have to pay a smaller price for the same amount of sales generated by the company.

Estimated One-Year EPS Growth F(1)/F(0) greater than or equal to X-Industry Median: This parameter will help in screening stocks that have growth rates higher than the industry median.

Average 20-day Volume greater than or equal to 100,000: The addition of this metric ensures that shares can be traded easily.

Current Price greater than or equal to $5: This parameter will help in screening stocks that are trading at a minimum price of $5 or higher.

Zacks Rank less than or equal to 2: It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have always managed to beat adversities and outperform the market.

Value Score of less than or equal to B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

Here are our five picks out of the 17 stocks that passed the screen:

AMC Global Media is an entertainment company that distributes content worldwide. This Zacks Rank #1 stock has a Value Score of A.

AMC Global Media has an expected year-over-year earnings growth rate of 36.5% for 2026. The Zacks Consensus Estimate for AMCX’s 2026 earnings has been revised 53% higher over the last 60 days.

Lifetime Brands is a leading global provider of branded kitchenware, tableware and other products. This Zacks Rank #1 stock has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lifetime Brands has an expected year-over-year earnings growth rate of 156.8% for 2026. The consensus estimate for LCUT’s 2026 earnings has moved up 184.9% over the past 60 days.

OptimumBank offers real estate lending and retail banking products to individuals and businesses. This Zacks Rank #1 stock has a Value Score of A.

OptimumBank has an expected year-over-year earnings growth rate of 39.4% for 2026. The Zacks Consensus Estimate for OPHC’s 2026 earnings has been revised 16.5% higher over the last 60 days.

EnerSys engages in manufacturing, marketing and distribution of various industrial batteries. This Zacks Rank #1 stock has a Value Score of B.

EnerSys has an expected year-over-year earnings growth rate of 23.1% for 2026. The consensus estimate for ENS’ 2026 earnings has been revised 7.4% upward over the past 60 days.

First American Financial serves homebuyers and sellers, real estate professionals, loan originators and servicers, commercial property professionals, homebuilders and others involved in residential and commercial property transactions with products and services specific to their needs. This Zacks Rank #2 stock has a Value Score of A.

First American Financial has an expected earnings growth rate of 17.5% for 2026. The Zacks Consensus Estimate for FAF’s 2026 earnings has been revised 4.4% upward over the past 60 days.

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."

Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.

A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.

First American Financial (FAF - Free Report) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:

A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 2.9%, the stock of this financial services company is certainly well-positioned in this regard.

While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. FAF meets this criterion too, as the stock gained 9.2% over the past 12 weeks.

Moreover, the momentum for FAF is fast paced, as the stock currently has a beta of 1.22. This indicates that the stock moves 22% higher than the market in either direction.

Given this price performance, it is no surprise that FAF has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.

In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped FAF earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Most importantly, despite possessing fast-paced momentum features, FAF is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. FAF is currently trading at 0.95 times its sales. In other words, investors need to pay only 95 cents for each dollar of sales.

So, FAF appears to have plenty of room to run, and that too at a fast pace.

In addition to FAF, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.

However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

First American Financial (FAF - Free Report) is a stock many investors are watching right now. FAF is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.43. This compares to its industry's average Forward P/E of 27.32. Over the last 12 months, FAF's Forward P/E has been as high as 15.32 and as low as 9.75, with a median of 11.61.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FAF has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.33.

Universal Insurance Holdings (UVE - Free Report) may be another strong Insurance - Property and Casualty stock to add to your shortlist. UVE is a Zacks Rank of #2 (Buy) stock with a Value grade of A.

Furthermore, Universal Insurance Holdings holds a P/B ratio of 1.58 and its industry's price-to-book ratio is 16.98. UVE's P/B has been as high as 1.89, as low as 1.19, with a median of 1.54 over the past 12 months.

These are only a few of the key metrics included in First American Financial and Universal Insurance Holdings strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, FAF and UVE look like an impressive value stock at the moment.

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Headquartered in Santa Ana, First American Financial (FAF - Free Report) is a Finance stock that has seen a price change of 16.68% so far this year. Currently paying a dividend of $0.55 per share, the company has a dividend yield of 3.07%. In comparison, the Insurance - Property and Casualty industry's yield is 0.63%, while the S&P 500's yield is 1.3%.

Looking at dividend growth, the company's current annualized dividend of $2.20 is up 0.9% from last year. Over the last 5 years, First American Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 3.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. First American Financial's current payout ratio is 31%, meaning it paid out 31% of its trailing 12-month EPS as dividend.

FAF is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $7.02 per share, which represents a year-over-year growth rate of 16.03%.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FAF is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: First American Financial (FAF - Free Report) Headquartered in Santa Ana, CA, First American Financial Corporation, through its subsidiaries, provides title insurance, settlement services and other financial services and risk solutions to homeowners and lenders. Its revenues are reported under the title insurance and services segment and the home warranty segment.

FAF is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. FAF has a Growth Style Score of B, forecasting year-over-year earnings growth of 16% for the current fiscal year.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.21 to $7.02 per share. FAF also boasts an average earnings surprise of +23.6%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FAF should be on investors' short list.

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