FAF Stock Analysis: Buy, Sell, or Hold?
FAF - First American Financial Corporation
$69.82
-0.14 (-0.20%)
▼
5d:
-0.44%
30d:
+10.14%
90d:
+4.07%
BUY
MODERATE Confidence
Analysis Updated: May 7, 2026 12:00 AM ET
Earnings: Apr 22, 2026
0d
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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 0.9% decline. Moderate conviction.
💡 BUY OPPORTUNITY: FAF shows positive signals but monitor for confirmation. Market pricing in 0.9% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$91.16
Based on 4.9% avg growth
INTRINSIC VALUE TODAY
$56.60
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 9.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: FAF is currently trading at $69.82, which is considered extended relative to its 30-day fair value range of $61.62 to $69.45. The stock's valuation (Forward PE: 9.6) is in line with its historical norms (9.9). Remarkably, the market is currently pricing in an annual earnings decline of 0.9% over the next few years. This pessimistic expectation contrasts with the company's recent 70.4% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, FAF is in a uptrend. The price is approaching resistance at $71.42. 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 (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $86.20 (+23.5%). 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 $71.42. 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 (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $86.20 (+23.5%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$61.62 -
$69.45
Company Quality Score
61/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
61.9%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 23.5% below Wall St target ($86.20)
Trading Range Analysis
30-Day Trading Range
$61.62 -
$69.45
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$67.43
Resistance Level
$71.42
Current Trend
Uptrend
Technical data as of
May 7, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.61
Wall Street Target
$86.20
(+23.5%)
Revenue Growth (YoY)
16.2%
Earnings Growth (YoY)
70.4%
Profit Margin
8.7%
Valuation Discount vs History
-0.9% cheaper
PE vs Historical
9.6 vs 9.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.9%
(market-implied from PE analysis)
1-Year Target
$69.19
(-1%)
2-Year Target
$68.57
(-2%)
3-Year Target
$67.95
(-3%)
3-Yr Target (if PE normalizes)
(PE: 10→10)
$70.02
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.9, Growth: 5.7%)
$188.49
(+170%)
Base:
(SPY PE: 9.6, Growth: 5.7%)
$82.54
(+18%)
Bear:
(PE: 8.2, Growth: 5.7%)
$70.16
(+1%)
📈
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: 10.76 | Current EPS (TTM): $6.50
Bull Case
$86.04
(+23%)
Analyst growth 11.8%, PE expands to 11.8
Base Case
$78.21
(+12%)
Market implied 11.8%, PE stable at 10.8
Bear Case
$47.57
(-32%)
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.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 9.6 to 9.9
Stabilization Target:
$71.94
(+3.0%)
PE Expansion Potential:
+3.0%
Share & Embed Analysis
Last updated: May 08, 2026 8:19 AM ET
Data refreshes hourly during market hours. Next update: 9:19 AM
Data refreshes hourly during market hours. Next update: 9:19 AM
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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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