FAF Stock Analysis: Buy, Sell, or Hold?
FAF - First American Financial Corporation
$74.99
-0.54 (-0.71%)
▼
5d:
-0.19%
30d:
+6.43%
90d:
+6.93%
BUY
MODERATE Confidence
Analysis Updated: Jul 31, 2026 12:00 AM ET
Earnings: Oct 21, 2026
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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 1.3% annual growth which appears achievable. Moderate conviction.
💡 BUY OPPORTUNITY: FAF shows positive signals but monitor for confirmation. Market pricing in 1.3% 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
$86.25
Based on 3.8% avg growth
INTRINSIC VALUE TODAY
$53.55
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 $74.99, which is considered extended relative to its 30-day fair value range of $68.17 to $74.68. The stock's valuation (Forward PE: 10.1) is in line with its historical norms (9.7). At these levels, the market is pricing in 1.3% 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. Immediate support is located at $68.66, while resistance sits at $79.87.
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 $87.67 (+16.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, FAF is in a uptrend. Immediate support is located at $68.66, while resistance sits at $79.87.
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 $87.67 (+16.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$68.17 -
$74.68
Company Quality Score
56/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
60.5%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($87.67)
- NEUTRAL: Market pricing in 1.3% annual earnings growth - fairly valued
Trading Range Analysis
30-Day Trading Range
$68.17 -
$74.68
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$68.66
Resistance Level
$79.87
Current Trend
Uptrend
Technical data as of
Jul 31, 2026
Fundamental Context
Forward P/E (Next Year Est.)
10.14
Wall Street Target
$87.67
(+16.9%)
Revenue Growth (YoY)
15.0%
Earnings Growth (YoY)
50.4%
Profit Margin
9.3%
Valuation Premium vs History
+1.3% premium
PE vs Historical
10.1 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
$75.96
(+1%)
2-Year Target
$76.95
(+3%)
3-Year Target
$77.95
(+4%)
3-Yr Target (if PE normalizes)
(PE: 10→10)
PE COMPRESSION
$74.58
(-1%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.7, Growth: 3.5%)
$170.11
(+127%)
Base:
(SPY PE: 10.1, Growth: 3.5%)
$83.19
(+11%)
Bear:
(PE: 8.6, Growth: 3.5%)
$70.71
(-6%)
📈
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: 10.85 | Current EPS (TTM): $6.96
Bull Case
$88.30
(+18%)
Analyst growth 6.3%, PE expands to 11.9
Base Case
$80.27
(+7%)
Market implied 6.3%, PE stable at 10.9
Bear Case
$51.36
(-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.
Share & Embed Analysis
Last updated: August 03, 2026 1:49 AM ET
Data refreshes hourly during market hours. Next update: 2:49 AM
Data refreshes hourly during market hours. Next update: 2:49 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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