FAF Stock Analysis: Buy, Sell, or Hold?
FAF - First American Financial Corporation
$70.06
0.75 (1.08%)
▲
5d:
-0.04%
30d:
+5.94%
90d:
+10.66%
BUY
MODERATE Confidence
Analysis Updated: Jul 13, 2026 12:00 AM ET
Earnings: Jul 22, 2026
7d
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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% decline. Moderate conviction.
💡 BUY OPPORTUNITY: FAF shows positive signals but monitor for confirmation. Market pricing in 0.1% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$89.74
Based on 5.1% avg growth
INTRINSIC VALUE TODAY
$55.72
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 $70.06, which is considered extended relative to its 30-day fair value range of $66.15 to $69.79. The stock's valuation (Forward PE: 9.7) is in line with its historical norms (9.7). Remarkably, the market is currently pricing in an annual earnings decline of 0.1% 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 $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 (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 $85.80 (+22.5%). 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 $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 (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 $85.80 (+22.5%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$66.15 -
$69.79
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 22.5% below Wall St target ($85.80)
Trading Range Analysis
30-Day Trading Range
$66.15 -
$69.79
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.)
9.69
Wall Street Target
$85.80
(+22.5%)
Revenue Growth (YoY)
16.2%
Earnings Growth (YoY)
70.4%
Profit Margin
8.7%
Valuation Discount vs History
-0.1% cheaper
PE vs Historical
9.7 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
$69.99
(0%)
2-Year Target
$69.92
(0%)
3-Year Target
$69.85
(0%)
3-Yr Target (if PE normalizes)
(PE: 10→10)
$69.95
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 6.1%)
$187.97
(+168%)
Base:
(SPY PE: 9.7, Growth: 6.1%)
$83.60
(+19%)
Bear:
(PE: 8.2, Growth: 6.1%)
$71.06
(+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: 10.66 | Current EPS (TTM): $6.50
Bull Case
$84.84
(+21%)
Analyst growth 11.3%, PE expands to 11.7
Base Case
$77.12
(+10%)
Market implied 11.3%, PE stable at 10.7
Bear Case
$47.13
(-33%)
Severe decline -20.0%, PE contracts to 9.1
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 9.7 to 9.7
Stabilization Target:
$70.16
(+0.1%)
PE Expansion Potential:
+0.1%
Share & Embed Analysis
Last updated: July 13, 2026 7:18 PM ET
Data refreshes hourly during market hours. Next update: 8:18 PM
Data refreshes hourly during market hours. Next update: 8:18 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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