Fidelity National Financial has been treading water for the past six months, holding steady at $60.82. The stock also fell short of the S&P 500’s 8.6% gain during that period.
Is there a buying opportunity in Fidelity National Financial, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free.
Why Is Fidelity National Financial Not Exciting?
We're cautious about Fidelity National Financial. Here are three reasons we avoid FNF and a stock we'd rather own.
1. Net Premiums Earned Hit a Plateau
Insurers sell policies then use reinsurance (insurance for insurance companies) to protect themselves from large losses. Net premiums earned are therefore what's collected from selling policies less what’s paid to reinsurers as a risk mitigation tool.
Fidelity National Financial’s net premiums earned was flat over the last five years, much worse than the broader insurance industry. This shows that policy underwriting underperformed its other business lines.
3. EPS Barely Growing
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Fidelity National Financial’s EPS grew at a weak 3.4% compounded annual growth rate over the last five years, lower than its 9.5% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.
Final Judgment
Fidelity National Financial’s business quality ultimately falls short of our standards. With its shares underperforming the market lately, the stock trades at 1.8× forward P/B (or $60.82 per share). This valuation multiple is fair, but we don’t have much faith in the company. We're pretty confident there are more exciting stocks to buy at the moment. Let us point you toward the Amazon and PayPal of Latin America.
Stocks We Would Buy Instead of Fidelity National Financial
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
