Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 24th, 2026

Bank of New York Mellon Corp grew its position in shares of First American Financial Corporation (NYSE:FAF – Free Report) by 2.9% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 899,197 shares of the insurance provider’s stock after acquiring an additional 25,671 shares during the period. Bank of New York Mellon Corp owned about 0.88% of First American Financial worth $54,213,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of FAF. Northwestern Mutual Wealth Management Co. increased its holdings in First American Financial by 4,485,375.2% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 5,786,263 shares of the insurance provider’s stock valued at $355,508,000 after purchasing an additional 5,786,134 shares during the period. Norges Bank purchased a new stake in First American Financial in the 4th quarter worth approximately $75,011,000. Manning & Napier Advisors LLC purchased a new stake in First American Financial in the 4th quarter worth approximately $63,693,000. Boston Partners grew its position in shares of First American Financial by 8.9% in the 3rd quarter. Boston Partners now owns 6,133,594 shares of the insurance provider’s stock worth $393,690,000 after buying an additional 500,649 shares during the last quarter. Finally, AQR Capital Management LLC grew its position in shares of First American Financial by 88.0% in the 4th quarter. AQR Capital Management LLC now owns 1,037,854 shares of the insurance provider’s stock worth $63,766,000 after buying an additional 485,731 shares during the last quarter. 89.05% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity In related news, SVP Lisa W. Cornehl sold 5,823 shares of First American Financial stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $68.63, for a total transaction of $399,632.49. Following the completion of the transaction, the senior vice president directly owned 29,635 shares of the company’s stock, valued at $2,033,850.05. This trade represents a 16.42% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 3.50% of the stock is currently owned by insiders.

Key First American Financial News Here are the key news stories impacting First American Financial this week:

Positive Sentiment: FAF beat second-quarter expectations, reporting $2.08 in EPS versus the $1.80 consensus and revenue of $2.11 billion versus $2.03 billion expected, helped by commercial title strength, higher investment income, and better average revenue per order. Article Title Positive Sentiment: Benchmark Co. initiated coverage with a Buy rating and an $85 price target, implying meaningful upside from recent trading levels. Article Title Neutral Sentiment: Several transcript and earnings-snapshot articles from Benzinga, Seeking Alpha, and other outlets mainly repeat the same strong quarterly results and conference call details, reinforcing the upbeat but not materially new narrative. Article Title Neutral Sentiment: Zacks Research nudged some future EPS estimates higher for 2027 and 2028, but cut its Q1 2027 forecast, leaving the longer-term outlook mixed while maintaining a Hold rating. Article Title Analyst Ratings Changes A number of equities analysts recently commented on FAF shares. Barclays upped their target price on First American Financial from $80.00 to $83.00 and gave the company an “overweight” rating in a report on Tuesday, July 7th. Zacks Research cut shares of First American Financial from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 23rd. Truist Financial boosted their price objective on shares of First American Financial from $82.00 to $85.00 and gave the company a “buy” rating in a research report on Friday, April 24th. Weiss Ratings restated a “buy (b)” rating on shares of First American Financial in a report on Monday. Finally, Wall Street Zen cut shares of First American Financial from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Seven equities 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.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $84.20.

Get Our Latest Stock Report on FAF

First American Financial Stock Performance Shares of NYSE:FAF opened at $69.08 on Friday. First American Financial Corporation has a 52-week low of $56.20 and a 52-week high of $73.50. The firm has a market capitalization of $7.04 billion, a P/E ratio of 9.57, a P/E/G ratio of 0.69 and a beta of 1.23. The stock has a 50 day moving average price of $68.22 and a 200-day moving average price of $65.91.

First American Financial (NYSE:FAF – Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The insurance provider reported $2.08 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.28. The company had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.03 billion. First American Financial had a return on equity of 13.43% and a net margin of 9.33%.The firm’s revenue was up 15.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.53 earnings per share. On average, equities analysts forecast that First American Financial Corporation will post 6.74 EPS for the current fiscal year.

First American Financial Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 8th were paid a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 3.2%. The ex-dividend date was Monday, June 8th. First American Financial’s dividend payout ratio (DPR) is presently 33.79%.

First American Financial 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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First American Financial NYSE: FAF reported stronger second-quarter earnings as growth in commercial title activity, higher investment income tied to deposit growth and continued investment in artificial intelligence initiatives helped offset sluggish residential purchase demand.

On the company’s second-quarter 2026 earnings call, Chief Executive Officer Mark Seaton said First American generated adjusted earnings per share of $2.08, up 36% from the prior year. Chief Financial Officer Matt Wajner said GAAP earnings were $2.12 per diluted share, while adjusted earnings excluded net investment gains and purchase-related intangible amortization.

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“Our earnings momentum continued in the second quarter,” Seaton said, highlighting commercial as a “standout performer.”

Commercial Title Revenue Sets Second-Quarter Record Commercial revenue increased 34% from the year-ago period to $314 million, according to Wajner. The gain was driven by a 31% increase in average revenue per order, which reached $19,980 per transaction, a record for the company’s commercial business.

Seaton said commercial revenue set a second-quarter record, with the company closing 14 transactions that generated more than $1 million in premium, compared with 11 such transactions a year earlier. Within First American’s National Commercial Services division, Seaton said demand remained broad-based, with 10 of 11 asset classes growing year-over-year.

During the question-and-answer portion of the call, Seaton said industrial represented 23% of commercial premium, followed by multifamily at 16%, development sites at 14% and retail at 14%. He added that development site revenue was up 33% from last year, multifamily rose 23% and retail increased 59%. Data center revenue rose 147%, but Seaton emphasized that commercial growth was not limited to that category.

“We’re seeing broad-based growth,” Seaton said. “It’s not like we’re just doing a few data centers that are driving our revenue.”

Seaton said First American’s commercial pipeline “has never been stronger,” noting that the company had already closed three transactions generating more than $1 million in premium during July and that commercial open orders were up 9% over the first three weeks of the month.

Residential Purchase Market Remains Soft Residential purchase revenue increased 2% during the quarter, with Wajner citing a 6% increase in average revenue per order that was partially offset by a 3% decline in closed orders. He said the decline in closed purchase orders reflected continued weakness in home sale activity.

Seaton said affordability challenges continued to weigh on existing home sales. Through the first three weeks of July, open purchase orders were flat compared with last year, and he said the company remained “more cautious than the broader consensus” on the residential purchase market.

Refinance revenue rose 18% year-over-year, supported by a brief decline in mortgage rates earlier in the year. Wajner said refinance closed orders increased 12%, while average revenue per order rose 5%. However, both executives noted that refinance activity has moderated as mortgage rates moved higher again. Wajner said refinance accounted for just 5% of direct revenue during the quarter, underscoring how challenged the market remains relative to historical levels.

First American Trust Drives Deposit and Investment Income Growth Seaton identified First American Trust as one of the company’s most important earnings drivers, calling it a growing source of investment income. Average deposits at the bank totaled $7.9 billion in the quarter, up 30% from last year. Seaton said 36% of deposits came from sources outside the company’s captive title operations.

ServiceMac, First American’s mortgage sub-servicer, was the largest contributor to non-title deposits, accounting for $1.7 billion, up 76% from last year. Seaton said ServiceMac’s loan portfolio grew 54% during the quarter and that deposits should increase as the portfolio expands.

The company’s 1031 exchange banking solution also contributed to deposit growth. Seaton said average deposits from that business were $827 million in the second quarter, representing about one-third of total 1031 balances, less than a year after the solution launched. He also said 310 title agents now bank with First American Trust, up 37% from last year.

Wajner said investment income was $164 million in the second quarter, up 11% from the year-ago period, driven primarily by growth in the investment portfolio tied to higher deposits. Interest expense increased 33% to $30 million because of higher deposit balances at First American Trust. In response to an analyst question, Wajner said investment income net of interest expense grew 8% year-over-year and said that figure was a “good proxy” for growth in the second half of the year.

AI Initiatives Remain a Strategic Focus Seaton said First American’s primary strategic priority remains using artificial intelligence across the company to improve productivity, customer service and operating capabilities. He cited several examples, including a project to update 1,300 forms that historically required a lengthy manual process. Seaton said new AI tools reduced the time required by 97%.

The company also launched Exam Assist QC, an AI-enabled quality control workflow that has processed more than 50,000 orders, with 92% requiring no additional human review. At ServiceMac, Seaton said a virtual agent for loan transfer inquiries improved self-service success from 0% in April to 42% in June, with plans to expand from one self-service use case to seven by year-end.

Seaton also updated investors on Endpoint and Sequoia, two platforms tied to First American’s efforts to reimagine title and settlement processes. Endpoint, which uses agentic AI to automate routine escrow tasks, remains on track to scale across the company’s local title branch network by the end of 2027. First American converted its first title office in Spokane, Washington, during the quarter and plans a statewide rollout in Washington by year-end before a broader national deployment in 2027.

Sequoia, the company’s AI-powered title decisioning platform, expanded refinance capabilities into a centralized lender division in Southern California and broadened California refinance coverage from eight counties to 41. Seaton said the refinance automation rate improved from 35% to 40% during the quarter. For purchase transactions, Sequoia currently provides instant title decisioning for about 16% of purchase orders at opening in certain counties, with management seeing longer-term potential to automate about 70% of purchase title decisions and 80% of refinance decisions in markets where First American maintains title plants.

Margins, Cash Flow and Capital Allocation In the title segment, adjusted total revenue was $2 billion, up 14% from the same quarter of 2025. Wajner said agency revenue was $820 million, up 14%, while information and other revenue rose 12% to $295 million, driven by ServiceMac revenue growth, higher demand for non-insured information products and services, and refinance activity in Canadian operations.

Personnel costs rose 9% to $572 million, mainly due to incentive compensation tied to improved financial performance and higher salary expense. Other operating expenses increased 15% to $319 million, primarily reflecting higher production expenses from higher volumes and increased software expense. The title segment’s pretax margin was 15.7%, or 14.0% on an adjusted basis.

The home warranty segment reported adjusted total revenue of $112 million, up 1%. Its loss ratio improved to 40% from 41% a year earlier, as lower claim frequency was partially offset by higher claim severity. Adjusted pretax margin in the segment was 20.2%.

Seaton said free cash flow totaled $285 million in the first six months of the year, up 32% from last year, driven by improving operating cash flow and an 18% decline in capital expenditures. He said First American’s top capital allocation priority remains investing in technology, platforms and products, followed by acquisitions with strong strategic synergies and returning capital through dividends and opportunistic share repurchases.

During the quarter, First American repurchased 330,000 shares for $20 million at an average price of $61.99, Wajner said. Seaton said the company is not currently in the market repurchasing shares but continues to evaluate buybacks opportunistically. He added that the company expects to continue increasing its dividend over time.

About First American Financial (NYSE:FAF)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.

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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First American Financial (FAF - Free Report) came out with quarterly earnings of $2.08 per share, beating the Zacks Consensus Estimate of $1.8 per share. This compares to earnings of $1.53 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +15.56%. A quarter ago, it was expected that this financial services company would post earnings of $1.06 per share when it actually produced earnings of $1.33, delivering a surprise of +25.47%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

First American Financial, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $2.12 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.43%. This compares to year-ago revenues of $1.84 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

First American Financial shares have added about 16.6% since the beginning of the year versus the S&P 500's gain of 9.7%.

What's Next for First American Financial?While First American Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for First American Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.75 on $2.01 billion in revenues for the coming quarter and $6.74 on $7.88 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

United Fire Group (UFCS - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3.

This property and casualty insurance company is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of -20%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

United Fire Group's revenues are expected to be $378.9 million, up 13% from the year-ago quarter.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? First American Financial (FAF - Free Report) , which belongs to the Zacks Insurance - Property and Casualty industry, could be a great candidate to consider.

This financial services company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 29.51%.

For the last reported quarter, First American Financial came out with earnings of $1.33 per share versus the Zacks Consensus Estimate of $1.06 per share, representing a surprise of 25.47%. For the previous quarter, the company was expected to post earnings of $1.49 per share and it actually produced earnings of $1.99 per share, delivering a surprise of 33.56%.

Thanks in part to this history, there has been a favorable change in earnings estimates for First American Financial lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

First American Financial has an Earnings ESP of +0.17% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 22, 2026.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

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 14.35%. Currently paying a dividend of $0.55 per share, the company has a dividend yield of 3.13%. In comparison, the Insurance - Property and Casualty industry's yield is 0.77%, while the S&P 500's yield is 1.36%.

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 34%, meaning it paid out 34% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, FAF expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $6.75 per share, with earnings expected to increase 11.57% 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. 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).

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—Earnings release dates for remainder of 2026—

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 that it will host a conference call to discuss its second-quarter 2026 earnings results on Thursday, July 23, 2026, at 11 a.m. EDT.

The call will follow the release of the company’s earnings results for the second quarter of 2026, which is scheduled for Wednesday, July 22, 2026, after the close of regular trading.

The conference call is open to investors, members of the financial community, the media and other members of the public. It can be accessed online at http://www.firstam.com/investor or by dialing toll free 877-407-8293. Callers from outside the United States may dial +1 201-689-8349.

An audio replay of the conference call will be available through August 6, 2026 by dialing 201-612-7415 and using the conference ID 13761705. An audio archive of the call and a copy of the second-quarter 2026 earnings release, including the financial information contained therein, will also be available on First American’s investor website.

At the present time, the company expects to issue a news release announcing its third-quarter financial results after the close of regular trading on Wednesday, Oct. 21, 2026 and host a conference call at 11 a.m. EDT on Thursday, Oct. 22, 2026.

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.

More News From First American Financial Corporation

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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 Pam Forrester, senior vice president of Lender Division operations, was honored as one of HousingWire’s 2026 Women of Influence. HousingWire's editorial selection committee selects Women of Influence winners based on their professional achievements within their organizations and contributions to the industry, community outreach, client impact and personal success.

“Pam's leadership has helped shape the future of mortgage technology, while creating lasting value for our customers, our team, and our industry. She has an exceptional ability to turn bold ideas into meaningful results."

Share “Pam's leadership has helped shape the future of mortgage technology, while creating lasting value for our customers, our team, and our industry,” said Todd McGowan, Ph.D., president of First American’s Lender Division. “She has an exceptional ability to turn bold ideas into meaningful results, all while investing in the growth of those around her. This recognition is a well-deserved reflection of the impact she has made throughout her career.”

Forrester has earned a reputation as a visionary leader whose influence extends well beyond her organization to the broader mortgage industry. Through more than 30 years of innovation, operational excellence, and servant leadership, she has transformed how lenders and servicers manage critical document and servicing processes, while actively developing future leaders and championing opportunities for women across the organization.

“The Women of Influence award recognizes leaders whose decisions, expertise and vision have a meaningful impact on the housing industry,” said Clayton Collins, CEO of HousingWire. “This year's honorees are leading organizations, business lines and strategic initiatives that influence how housing professionals serve consumers, operate their businesses and respond to changing market conditions. They also represent the depth of talent and leadership women continue to bring to every corner of the housing economy. Their contributions continue to strengthen and advance the industry.”

About First American Title Insurance Company

First American Title Insurance Company, the largest subsidiary of First American Financial Corporation (NYSE: FAF), traces its history to 1889. One of the largest title insurers in the nation, the company offers title services through its direct operations and an extensive network of agents throughout the United States and abroad. First American Title provides comprehensive title insurance coverage and professional services for real estate purchases, construction, refinances and equity loans. For more information, visit www.firstam.com/title.

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.

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Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease 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 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. The company was founded in the state of Delaware in January 2008. On Jun 1, 2010, the company’s common stock was listed on the New York Stock Exchange.

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 12.6% for the current fiscal year.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.09 to $6.81 per share. FAF boasts an average earnings surprise of +22%.

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

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.

First American Financial (FAF - Free Report) is headquartered in Santa Ana, and is in the Finance sector. The stock has seen a price change of 13.02% since the start of the year. The financial services company is currently shelling out a dividend of $0.55 per share, with a dividend yield of 3.17%. This compares to the Insurance - Property and Casualty industry's yield of 0.82% and the S&P 500's yield of 1.44%.

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 34%, meaning it paid out 34% 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 $6.81 per share, with earnings expected to increase 12.56% 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. However, not all companies offer 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. 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).

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

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

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means 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 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.

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 +24% 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.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

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 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. The company was founded in the state of Delaware in January 2008. On Jun 1, 2010, the company’s common stock was listed on the New York Stock Exchange.

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 1.9% over the past four weeks.

For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.09 to $6.81 per share. FAF boasts an average earnings surprise of +22%.

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

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.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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 10.42% so far this year. Currently paying a dividend of $0.55 per share, the company has a dividend yield of 3.24%. In comparison, the Insurance - Property and Casualty industry's yield is 0.78%, while the S&P 500's yield is 1.42%.

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 34%, meaning it paid out 34% 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 $6.83 per share, representing a year-over-year earnings growth rate of 12.89%.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. 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. That said, they can take comfort from the fact that FAF is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 #1 (Strong Buy), as well as an A grade 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 26.12. FAF's Forward P/E has been as high as 15.32 and as low as 9.75, with a median of 11.61, all within the past year.

Another valuation metric that we should highlight is FAF's 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 solid versus its industry's average P/B of 1.38. Within the past 52 weeks, 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 0.9. This compares to its industry's average P/S of 1.2.

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

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 April 2026 Home Price Index (HPI) report. The report tracks home price changes less than four weeks behind real time at the national, state and metropolitan (Core-Based Statistical Area) levels and includes metropolitan price tiers that segment sale transactions into starter, mid and luxury tiers. The full report can be found here.

April1 National House Price Index

First American Data & Analytics’ National Non-Seasonally Adjusted (NSA) HPI

Metric

Change in HPI

March 2026-April 2026 (month over month)

0.2 percent

April 2025-April 2026 (year over year)

0.0 percent

Highlights

Annual house price appreciation remained below 1 percent for the eighth consecutive month in April. House price growth reported in last month’s HPI for February 2026 to March 2026 was revised up by +0.3 percentage point, from +0.3 percent to +0.6 percent. “While annual house price growth is essentially flat nationally, a slight uptick in monthly appreciation suggests the typical spring home-buying season lift is buoying the housing market, though modestly relative to historical norms,” said Mark Fleming, chief economist at First American. “Nationally, prices are now just shy of the peak reached last May, indicating the market has found a balance between affordability constraints, available inventory and buyer demand.”

April 2026 Local Market Price Tier Highlights

The First American Data & Analytics HPI segments home price changes at the metropolitan level into three price tiers based on local market sales data: starter tier, which represents home sales prices at the bottom third of the market price distribution; mid-tier, which represents home sales prices in the middle third of the market price distribution; and the luxury tier, which represents home sales prices in the top third of the market price distribution.

“Regional divergence remains the defining feature of today’s housing market,” said Fleming. “While Midwestern and Northeastern markets continue to post annual price gains, 21 of the top 30 markets we track are either flat or below year-ago price levels. The 9.6 percentage point spread between Chicago, the strongest-performing market, and Austin, Texas, the weakest, illustrates just how localized housing market conditions have become.”

April 2026 First American Data & Analytics Price Tier HPI Highlights

Core-Based Statistical Areas (CBSAs) Ranked by Greatest Year-Over-Year Increases in Starter Tier HPI

CBSA

Change in Starter Tier HPI

Change in Mid-Tier HPI

Change in Luxury Tier HPI

St. Louis

+8.0 percent

+3.7 percent

+3.0 percent

Cambridge, Mass.

+5.3 percent

-0.2 percent

+3.1 percent

Chicago

+3.1 percent

+3.7 percent

+5.5 percent

Pittsburgh

+2.6 percent

+2.4 percent

-0.5 percent

Anaheim, Calif.

+1.3 percent

+1.2 percent

+2.7 percent

Additional April 2026 First American Data & Analytics HPI Highlights

Core-Based Statistical Areas (CBSAs) with Greatest Year-Over-Year Increases in HPI

CBSA

Change in HPI

Chicago

+4.4 percent

Cambridge, Mass.

+3.8 percent

St. Louis

+2.9 percent

New Brunswick, N.J.

+2.1 percent

Pittsburgh

+1.7 percent

Core-Based Statistical Areas (CBSAs) with a Year-Over-Year Decrease in HPI

Austin, Texas

-5.2 percent

Houston

-4.8 percent

Oakland, Calif.

-4.1 percent

Tampa, Fla.

-3.2 percent

San Antonio

-2.9 percent

HPI data for all 50 states and the largest 30 CBSAs by population is available here.

Visit the First American Economic Center for more research on housing market dynamics.

Next Release

The next release of the First American Data & Analytics House Price Index will take place the week of June 22, 2026.

April 2026 First American Data & Analytics House Price Index: Frequently Asked Questions

Q: Are U.S. home prices rising or falling in the 2026 Spring Home-Buying Season?
A: Nationally, home prices are relatively stable as the spring home-buying season reaches its peak months. While some Midwest and Northeast markets continue to post gains, many large housing markets remain flat or below year-ago price levels.

Q: Why are home prices essentially flat year over year, but increasing month over month?
A: The housing market appears to have settled into a balance between affordability constraints, available inventory and buyer demand, while regional economic conditions continue to drive significant differences between local markets.

Q: Which regions saw the strongest house price growth in April?
A: Midwestern and Northeastern markets continue to lead in annual price growth. Cities like Chicago, Cambridge, Mass. and St. Louis are among the top performers, while many markets in the South and West are still experiencing year-over-year price declines.

Q: Which housing markets saw the largest house price declines in April?
A: Among major metropolitan areas, Austin, Texas, Houston, Oakland, Calif., Tampa, Fla., and San Antonio recorded the largest annual house price declines in April 2026.

Q: What is the First American Data & Analytics HPI?
A: The First American Data & Analytics HPI measures changes in single-family home prices across the United States using a repeat-sales methodology. It tracks price movements at the national, state, and metropolitan (Core-Based Statistical Area) levels and includes starter, mid-tier, and luxury price segments.

Q: How current is the First American Data & Analytics HPI data?
A: The HPI tracks home price changes less than four weeks behind real time, making it one of the timeliest measures of U.S. home price trends available.

Q: Who produces the First American Data & Analytics HPI?
A: The HPI is produced by First American Data & Analytics, a division of First American Financial Corporation (NYSE: FAF), using more than 46 million paired real estate transactions and the industry’s largest property and ownership dataset.

Q: When will the next HPI report be released?
A: The next First American Data & Analytics Home Price Index report is scheduled for release during the week of June 22, 2026.

First American Data & Analytics HPI Methodology

The First American Data & Analytics HPI report measures single-family home prices, including distressed sales, with indices updated monthly beginning in 1980 through the month of the current report. HPI data is provided at the national, state and CBSA levels and includes preliminary index estimates for the month prior to the report (i.e. the preliminary result of July transactions is reported in August). The most recent index results are subject to revision as data from more transactions become available.

The HPI uses a repeat-sales methodology, which measures price changes for the same property over time using more than 46 million paired transactions to generate the indices. In non-disclosure states, the HPI utilizes a combination of public sales records, MLS sold and active listings, and appraisal data to estimate house prices. This comprehensive approach is particularly effective in areas where there is limited availability of accurate sale prices, such as non-disclosure states. Property type, price and location data are used to create more refined market segment indices. Real Estate-Owned transactions are not included.

Disclaimer

Opinions, estimates, forecasts and other views contained in this page are those of First American’s Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American’s business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2026 by First American. Information from this page may be used with proper attribution.

About First American Data & Analytics

First American Data & Analytics, a division of First American Financial Corporation, is a national provider of property-centric information, risk management and valuation solutions. First American maintains and curates the industry’s largest public records property and ownership dataset that includes more than 8.6 billion document images. Its major platforms and products include: DataTree® property data, FraudGuard® risk solution, RegsData® compliance suite, Procision™ AVM, and TaxSource™ property tax reporting. Find out more about how First American Data & Analytics powers the real estate, mortgage and title settlement services industries with advanced risk intelligence solutions at www.FirstAmDNA.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.

1 The most recent index results are subject to revision as data from more transactions become available.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260528639437/en/

Key Takeaways EV-to-EBITDA offers a fuller view of valuation by accounting for debt, unlike traditional P/E ratios.FAF, CAL, CVE, UGP and OTEX are screened as bargain stocks with low EV-to-EBITDA ratios.Each stock meets strict criteria, including valuation, trading volume, price, growth, and Value Score. Investors often focus on the price-to-earnings (P/E) ratio, while looking for attractively priced stocks. Easy to compute and widely recognized, it remains one of the most commonly used valuation metrics for estimating a stock’s fair market value. However, despite its widespread use, the P/E ratio comes with certain drawbacks.

Although P/E is the most popular valuation metric, a more complicated multiple called EV-to-EBITDA is often considered a more effective alternative. It provides a clearer picture of a company’s valuation and earnings potential by taking a more comprehensive approach. Although P/E considers a firm’s equity portion, EV-to-EBITDA captures its total value.

First American Financial Corporation (FAF - Free Report) , Caleres, Inc. (CAL - Free Report) , Cenovus Energy Inc. (CVE - Free Report) , Ultrapar Participacoes S.A. (UGP - Free Report) and Open Text Corporation (OTEX - Free Report) are some stocks with attractive EV-to-EBITDA ratios.

What Makes EV-to-EBITDA a Better Option?Also referred to as enterprise multiple, EV-to-EBITDA is 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. In essence, it is the entire value of a company. EBITDA, the other element, gives a clearer picture of a company’s profitability by removing the impact of non-cash expenses like depreciation and amortization that dampen net earnings. It is also often used as a proxy for cash flows.

Typically, the lower the EV-to-EBITDA ratio, the more enticing it is. A low EV-to-EBITDA ratio could indicate that a stock is undervalued. Unlike the P/E ratio, EV-to-EBITDA takes debt on a company’s balance sheet into account. For this reason, it is typically used to value acquisition targets. The ratio shows the amount of debt that the acquirer has to bear. Stocks flaunting 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.

EV-to-EBITDA is not devoid of limitations and alone cannot conclusively determine a stock’s inherent potential and future performance. The multiple varies across industries and is usually not appropriate when comparing stocks in different industries, given their diverse capital expenditure requirements.

Thus, instead of just relying on EV-to-EBITDA, you can club it with the other major ratios, such as price-to-book (P/B), P/E and price-to-sales (P/S) to achieve the desired results.

Screening CriteriaHere are the parameters to screen for bargain 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 18 stocks that passed the screen:

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 #1 stock has a Value Score of A.

First American Financial has an expected earnings growth rate of 12.6% for 2026. The Zacks Consensus Estimate for FAF’s 2026 earnings has been revised 6.7% upward over the past 60 days.

Caleres designs, develops, sources, manufactures and distributes footwear in the United States, Canada, East Asia and internationally. 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.

Caleres has an expected year-over-year earnings growth rate of 31.9% for the current fiscal year. The consensus estimate for CAL’s current fiscal-year earnings has moved up 4.7% over the past 60 days.

Cenovus Energy is a leading integrated energy firm with operations comprising marketing the produced oil, natural gas and natural gas liquids. This Zacks Rank #1 stock has a Value Score of B.

Cenovus Energy has an expected year-over-year earnings growth rate of 104.6% for 2026. The Zacks Consensus Estimate for CVE’s 2026 earnings has moved up 83.1% over the past 60 days.

Ultrapar Participacoes is one of the largest distributors of liquefied petroleum gas in Brazil and a leading producer of petrochemicals and chemicals. This Zacks Rank #2 company has a Value Score of A.

Ultrapar Participacoes has an expected year-over-year earnings growth rate of 100% for 2026. The Zacks Consensus Estimate for UGP's 2026 earnings has been revised 45% upward over the past 60 days.

OpenText is a leading information management company that provides software and services that empower digital businesses of all sizes. This Zacks Rank #2 company has a Value Score of A.

OpenText has an expected year-over-year earnings growth rate of 12% for the current fiscal year. The Zacks Consensus Estimate for OTEX’s current fiscal-year earnings has moved up 1.7% over the past 60 days.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of 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.

Zacks Premium also includes 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.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

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 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.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

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 +23.7% 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.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important 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.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

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 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. The company was founded in the state of Delaware in January 2008. On Jun 1, 2010, the company’s common stock was listed on the New York Stock Exchange.

FAF is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.57; value investors should take notice.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.43 to $6.81 per share. FAF boasts an average earnings surprise of +22%.

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

Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both First American Financial (FAF - Free Report) and American Coastal Insurance (ACIC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

First American Financial and American Coastal Insurance are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. This means that FAF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

FAF currently has a forward P/E ratio of 9.68, while ACIC has a forward P/E of 10.56. We also note that FAF has a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACIC currently has a PEG ratio of 3.52.

Another notable valuation metric for FAF is its P/B ratio of 1.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ACIC has a P/B of 1.48.

Based on these metrics and many more, FAF holds a Value grade of A, while ACIC has a Value grade of C.

FAF stands above ACIC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FAF is the superior value option right now.

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Headquartered in Santa Ana, First American Financial (FAF - Free Report) is a Finance stock that has seen a price change of 9.08% so far this year. Currently paying a dividend of $0.55 per share, the company has a dividend yield of 3.28%. In comparison, the Insurance - Property and Casualty industry's yield is 0.78%, while the S&P 500's yield is 1.45%.

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 34%, meaning it paid out 34% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for FAF for this fiscal year. The Zacks Consensus Estimate for 2026 is $6.81 per share, with earnings expected to increase 12.56% 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 have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that FAF is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).

Key Takeaways RDN, CINF, AFG and FAF stand out for consistent dividend payments and strong financial positions. Insurers benefit from investment income, technology adoption and continued underwriting discipline. Industry growth is supported by demand for coverage, AI adoption and ongoing merger activity. The U.S. insurance market experienced slowing premium growth after past highs, continued strong demand for catastrophe coverage, increasing tech adoption (AI), as well as significant M&A activity, along with navigating economic uncertainty and potential climate impacts. Despite lower pricing, underwriting discipline remains strong. The U.S. market continued to witness increasing casualty rates.

The Fed kept the fed funds rate unchanged at the 3.5-3.75% target range for a third consecutive meeting in April. Following a period of rate cuts in late 2025, the Fed has held rates steady as inflation and resilient economic data have complicated policymaking. Policymakers have held rates steady across consecutive meetings in early 2026, shifting the market consensus to expect fewer cuts or even potential rate hikes later in the year.

Thus, investors always look for a haven that ensures a steady return. Insurers like First American Financial Corporation (FAF - Free Report) , Radian Group Inc. (RDN - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) have been investors’ favorites, driven by their solid fundamentals that ensure consistent dividend payments. Industry players that boast an impressive dividend history have always attracted yield-seeking investors.

Price PerformanceThe insurance industry has declined 4.1% in the past year against the Zacks S&P 500 composite’s appreciation of 25.9% and the Finance sector’s growth of 12.2%.

Image Source: Zacks Investment Research

Dividend Stocks to the RescueInvestors consider dividend-paying companies useful as the income they provide can help them meet liquidity needs, and dividend-focused investing has historically demonstrated the ability to help lower volatility. Dividends are a major factor in reducing overall portfolio risk. A stable dividend acts as a cushion during market downturns, reducing overall portfolio swings. Companies that have consistently increased their dividends tend to be more financially stable, higher-quality businesses, and are more likely to have the ability to pay dividends consistently.

While dividend stocks are primarily known for providing income, they also offer the potential for capital appreciation. Companies that consistently pay and increase dividends over time are often in strong financial health, which can lead to steady growth in their stock prices. Investors may benefit from share price growth while also receiving periodic dividend income, which together form the total return on investment.

Investment income is an important contributor to insurers’ performance. They invest a portion of their premiums. Thus, insurers are direct beneficiaries of a rising rate environment. With a lower rate of return, investment income will suffer. However, a broader invested base will limit the downside.

Insurers should continue to invest heavily in technology to improve scale and efficiencies, while M&A is likely to be on the rise as more insurers seek growth through expansion.

Key Picks for Dividend InvestingTo choose some of the best dividend stocks from the aforementioned industry, we have run the Zacks Stock Screener to identify stocks with a dividend yield in excess of 2% and a sustainable dividend payout ratio of less than 60%, reflecting enough room for future dividend increases. These stocks also have a five-year historical dividend growth rate of more than 2% and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Let us dig deep into four such stocks.

First American Financial, with a market capitalization of $6.73 billion, provides closing and/or escrow services, home warranty products, and issues title insurance policies on residential and commercial property. FAF sports a Zacks Rank #1 at present.

Banking on strong operational performance, the company distributes wealth to its shareholders via dividends and share buybacks. In the first quarter of 2026, First American repurchased shares for a total of $33 million. The insurer raised its dividend by 2% in September 2025. These make the stock an attractive pick for yield-seeking investors. Its current dividend yields 3.33%, better than the industry average of 0.2%. The insurer’s payout ratio is 34, with a five-year dividend growth rate of 2.42%. (Check FAF’s dividend history here).

Rising home prices and steady refinancing activity should benefit First American as it stays focused on strengthening its core title business. It has been actively pursuing acquisitions, strengthening distribution relationships, and widening its international presence. Continued investment in long-term strategic initiatives, including the expansion of title plant assets and the upgrade of technology solutions to increase efficiency, bodes well.

Radian, with a market capitalization of $4.61 billion, is a niche player in the P&C markets, with a focus on specialized commercial products for businesses. RDN carries a Zacks Rank #2.

Riding on continued financial strength and flexibility, Radian declared a 4.1% increase in quarterly dividend in the first quarter of 2025. This marks the sixth consecutive year that the company has raised its quarterly dividend, which has more than doubled over the past five years. Its current dividend yield of 2.9% betters the industry average of 2.5%. The insurer’s payout ratio is 22, with a five-year dividend growth rate of 12.9%. (Check RDN’s dividend history here).

Radian remains focused on improving its mortgage insurance portfolio to drive long-term earnings growth. Its superior mortgage insurance portfolio is expected to create a strong foundation for future earnings. Business restructuring intensifies its focus on core business and services with higher growth potential, ensuring a predictable and recurring fee-based revenue stream. Radian Group maintains a solid balance sheet with sufficient liquidity and strong cash flows that help Radian Group to deploy capital via share repurchases and dividend hikes that enhance shareholders’ value.

American Financial Group, with a market capitalization of $11 billion, is a niche player in the P&C markets, with a focus on specialized commercial products for businesses. AFG carries a Zacks Rank #2 at present.

AFG has a long history of returning capital through regular and special dividends and share repurchases, and it has increased its dividend in each of the last 20 years. The insurer raised the dividend 10% beginning in October 2025 and paid a special dividend in the first quarter of 2026. Its current dividend yields 2.6%, better than the industry average of 0.2%. The insurer also pays special dividends. The insurer’s payout ratio is 32, with a five-year dividend growth rate of 12.5%. (Check AFG’s dividend history here).

AFG’s robust operating profitability at the P&C segment, a stellar investment performance and effective capital management support effective shareholders’ return. It expects operations to continue to generate significant excess capital, which provides ample opportunity for additional share repurchases or special dividends over the next year.

Cincinnati Financial, with a market capitalization of $25.74 billion, markets property and casualty insurance. It carries a Zacks Rank #3.

Through 2024, the company had increased the annual cash dividend rate for 65 consecutive years, a record that is believed to be matched by only seven other U.S. publicly traded companies. In January 2026, the board increased the regular quarterly dividend by 8%, setting the stage for the 66th consecutive year of increasing cash dividends. Its current dividend yields 2.3%, better than the industry average of 0.2%. The insurer’s payout ratio is 37, with a five-year dividend growth rate of 8.35%. The dividend increases reflected strong operating performance and signaled management's and the board's positive outlook and confidence in outstanding capital, liquidity and financial flexibility (Check CINF’s dividend history here).

Cincinnati Financial continues to grow through a disciplined expansion of Cincinnati Re, which is making a nice contribution to its overall earnings, better pricing, strong renewal, solid retention and exposure growth. A higher volume of written policies with a focus on earning new business through an agent-focused business model should drive long-term growth. It is building an agent network to sell its policies. This is because an agent-driven business is proving to be a more effective driver of growth and, therefore, holds promise for the long term.