FAF Stock Analysis: Buy, Sell, or Hold?
FAF - First American Financial Corporation
$70.09
0.61 (0.88%)
▲
5d:
+4.52%
30d:
+8.53%
90d:
+20.37%
BUY
MODERATE Confidence
Analysis Updated: Jul 6, 2026 12:00 AM ET
Earnings: Jul 22, 2026
15d
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: FAF shows positive signals but monitor for confirmation. Market pricing in 0.1% annual growth which appears achievable. Moderate conviction.
💡 BUY OPPORTUNITY: FAF shows positive signals but monitor for confirmation. Market pricing in 0.1% annual growth which appears achievable. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$87.65
Based on 4.7% avg growth
INTRINSIC VALUE TODAY
$54.43
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 9.7x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: FAF is currently trading at $70.09, which is considered extended relative to its 30-day fair value range of $65.38 to $68.77. The stock's valuation (Forward PE: 9.8) is in line with its historical norms (9.7). At these levels, the market is pricing in 0.1% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, FAF is in a uptrend. The price is approaching resistance at $68.75. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: FAF has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $85.20 (+21.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, FAF is in a uptrend. The price is approaching resistance at $68.75. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: FAF has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $85.20 (+21.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$65.38 -
$68.77
Company Quality Score
59/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
62.9%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 21.6% below Wall St target ($85.20)
- NEUTRAL: Market pricing in 0.1% annual earnings growth - fairly valued
Trading Range Analysis
30-Day Trading Range
$65.38 -
$68.77
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$63.97
Resistance Level
$68.75
Current Trend
Uptrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.76
Wall Street Target
$85.20
(+21.6%)
Revenue Growth (YoY)
16.2%
Earnings Growth (YoY)
70.4%
Profit Margin
8.7%
Valuation Premium vs History
+0.1% premium
PE vs Historical
9.8 vs 9.7
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+0.1%
(market-implied from PE analysis)
1-Year Target
$70.16
(+0%)
2-Year Target
$70.23
(+0%)
3-Year Target
$70.30
(+0%)
3-Yr Target (if PE normalizes)
(PE: 10→10)
PE COMPRESSION
$69.88
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 5.4%)
$183.31
(+162%)
Base:
(SPY PE: 9.8, Growth: 5.4%)
$82.13
(+17%)
Bear:
(PE: 8.3, Growth: 5.4%)
$69.81
(0%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (11x PE), but valuation improves significantly next year (10x PE) as earnings recover.
Trailing PE: 10.84 | Current EPS (TTM): $6.50
Bull Case
$86.00
(+24%)
Analyst growth 11.0%, PE expands to 11.9
Base Case
$78.18
(+13%)
Market implied 11.0%, PE stable at 10.8
Bear Case
$47.91
(-31%)
Severe decline -20.0%, PE contracts to 9.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: July 06, 2026 5:58 PM ET
Data refreshes hourly during market hours. Next update: 6:58 PM
Data refreshes hourly during market hours. Next update: 6:58 PM
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Technical Signals Check
Is FAF showing a specific setup today?
Insider Activity (6 Months)
2
Buys
0
Sells
+
Net
INSIDERS BUYING
Recent Transactions
Parker S Kennedy
BUY
44841 shares
2026-02-17
Parker S Kennedy
BUY
15000 shares
2026-02-13
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