First American Financial (FAF) Stock: Buy, Sell, or Hold?
FAF - First American Financial Corporation
$65.09
-1.37 (-2.06%)
âŧ
5d:
+2.62%
30d:
-4.41%
90d:
-13.36%
WAIT
LOW Confidence
Analysis Updated: Oct 22, 2026 12:00 AM ET
Earnings: Oct 21, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
âšī¸ NEUTRAL: FAF is fairly priced but lacks strong directional signals. At -1.3% expected growth, valuation appears fair. Wait for clearer setup or better entry on dips.
âšī¸ NEUTRAL: FAF is fairly priced but lacks strong directional signals. At -1.3% expected growth, valuation appears fair. Wait for clearer setup or better entry on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$79.98
Based on 2.9% avg growth
INTRINSIC VALUE TODAY
$49.66
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 $65.09, which is considered slightly low relative to its 30-day fair value range of $61.57 to $69.08. The stock's valuation (Forward PE: 9.3) is in line with its historical norms (9.7). Remarkably, the market is currently pricing in an annual earnings decline of 1.3% over the next few years. This pessimistic expectation contrasts with the company's recent 50.4% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, FAF is showing sideways momentum. Immediate support is located at $60.52, while resistance sits at $67.12.
Market Sentiment: The stock scores a mixed 52/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $84.17 (+26.6%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, FAF is showing sideways momentum. Immediate support is located at $60.52, while resistance sits at $67.12.
Market Sentiment: The stock scores a mixed 52/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $84.17 (+26.6%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$61.57 -
$69.08
Company Quality Score
50/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (52/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 26.6% below Wall St target ($84.17)
- WARNING: Composite score 50/100 in the bottom quintile â this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$61.57 -
$69.08
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$60.52
Resistance Level
$67.12
Current Trend
Sideways
Technical data as of
Oct 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.30
Wall Street Target
$84.17
(+26.6%)
Revenue Growth (YoY)
15.0%
Earnings Growth (YoY)
50.4%
Profit Margin
9.3%
Valuation Discount vs History
-1.3% cheaper
PE vs Historical
9.3 vs 9.7
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-1.3%
(market-implied from PE analysis)
1-Year Target
$65.60
(-1%)
2-Year Target
$64.74
(-3%)
3-Year Target
$63.90
(-4%)
3-Yr Target (if PE normalizes)
(PE: 9â10)
$66.67
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: 1.8%)
$149.93
(+126%)
Base:
(SPY PE: 9.3, Growth: 1.8%)
$70.19
(+6%)
Bear:
(PE: 7.9, Growth: 1.8%)
$59.66
(-10%)
đ
Valuation based on Current Earnings
Trailing PE: 9.18 | Current EPS (TTM): $7.22
Bull Case
$72.16
(+9%)
Analyst growth -1.0%, PE expands to 10.1
Base Case
$65.60
(-1%)
Market implied -1.0%, PE stable at 9.2
Bear Case
$45.06
(-32%)
Severe decline -20.0%, PE contracts to 7.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
đĄ
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 9.3 to 9.7
Stabilization Target:
$69.34
(+4.3%)
PE Expansion Potential:
+4.3%
Share & Embed Analysis
Last updated: October 22, 2026 1:11 PM ET
Data refreshes hourly during market hours. Next update: 2:11 PM
Data refreshes hourly during market hours. Next update: 2:11 PM
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Technical Signals Check
Is FAF showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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