4-Star Stocks Poised to Pop: Fidelity National Financial

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, title insurer Fidelity National Financial (NYSE: FNF  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Fidelity's business and see what CAPS investors are saying about the stock right now.

Fidelity facts

   
Headquarters Jacksonville, Fla.
Market Cap $3.09 billion
Industry Surety and title insurance
Management CEO/COO George Scanlon (since 2010)
CFO Anthony Park (since 2005)
Return on Equity (Average, Past 3 Years) 4.3%
Cash/Debt $553.6 million / $961.4 million
Dividend Yield 3.5%
Competitors First American Financial (NYSE: FAF  )
Old Republic International (NYSE: ORI  )
Stewart Information Services (NYSE: STC  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 88% of the 333 members who have rated Fidelity believe the stock will outperform the S&P 500 going forward. These bulls include Silvertip7 and NeuroNerd.

Just last month, Silvertip7 listed several of Fidelity's positives:

Near monopoly, free cash flow machine and grossly undervalued. Fundamentals stable to improving. ... Stock is worth over $20 and management aggressive buy backs signaling their own stock is best use of free cash.

Over the next five years, Fidelity is even expected to grow its bottom line at a solid rate of 11.5% annually. That's faster than direct rivals First American (9%), Old Republic (8%), and Stewart Information (5%).

CAPS member NeuroNerd elaborates on the bull case:

There's been a lot of negative sentiment hitting this stock b/c of concerns about its exposure to the housing market via the title insurance business and a recent dividend cut. However, the dividend cut is being used to fund share buybacks of the highly undervalued stock, and in my opinion is a better use of the capital. When the housing market eventually recovers, this sucker is going to soar, and in the meanwhile I'll kick up my heels and collect the still substantial 3.5% dividend.

What do you think about Fidelity, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Fidelity and First American are Motley Fool Inside Value picks. Stewart Information is a Motley Fool Hidden Gems choice. The Fool owns shares of Fidelity. Try any of our Foolish newsletter services free for 30 days.

We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1465873, ~/Articles/ArticleHandler.aspx, 11/26/2014 12:50:38 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement