FAF Stock Analysis: Buy, Sell, or Hold?
FAF - First American Financial Corporation
$69.10
-0.34 (-0.49%)
▼
5d:
+1.89%
30d:
+1.32%
90d:
+18.91%
BUY
MODERATE Confidence
Analysis Updated: Jun 23, 2026 12:00 AM ET
Earnings: Jul 22, 2026
27d
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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 0.6% decline. Moderate conviction.
💡 BUY OPPORTUNITY: FAF shows positive signals but monitor for confirmation. Market pricing in 0.6% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$89.26
Based on 4.9% avg growth
INTRINSIC VALUE TODAY
$55.42
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 $69.10, which is considered extended relative to its 30-day fair value range of $65.60 to $68.39. The stock's valuation (Forward PE: 9.6) is in line with its historical norms (9.7). Remarkably, the market is currently pricing in an annual earnings decline of 0.6% 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 (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 $86.20 (+24.1%). 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 $86.20 (+24.1%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$65.60 -
$68.39
Company Quality Score
59/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
61.9%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 24.1% below Wall St target ($86.20)
Trading Range Analysis
30-Day Trading Range
$65.60 -
$68.39
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.)
9.56
Wall Street Target
$86.20
(+24.1%)
Revenue Growth (YoY)
16.2%
Earnings Growth (YoY)
70.4%
Profit Margin
8.7%
Valuation Discount vs History
-0.6% cheaper
PE vs Historical
9.6 vs 9.7
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.6%
(market-implied from PE analysis)
1-Year Target
$69.02
(-1%)
2-Year Target
$68.61
(-1%)
3-Year Target
$68.20
(-2%)
3-Yr Target (if PE normalizes)
(PE: 10→10)
$69.18
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 5.7%)
$186.73
(+169%)
Base:
(SPY PE: 9.6, Growth: 5.7%)
$81.97
(+18%)
Bear:
(PE: 8.1, Growth: 5.7%)
$69.68
(+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: 10.50 | Current EPS (TTM): $6.50
Bull Case
$83.92
(+21%)
Analyst growth 11.7%, PE expands to 11.6
Base Case
$76.29
(+10%)
Market implied 11.7%, PE stable at 10.5
Bear Case
$46.43
(-33%)
Severe decline -20.0%, PE contracts to 8.9
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 9.7
Stabilization Target:
$70.45
(+1.4%)
PE Expansion Potential:
+1.4%
Share & Embed Analysis
Last updated: June 24, 2026 10:29 AM ET
Data refreshes hourly during market hours. Next update: 11:29 AM
Data refreshes hourly during market hours. Next update: 11:29 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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