FAF

First American Financial (FAF) is trading at a valuation discount despite strong commercial title insurance demand, AI-driven operational efficiencies, and growth opportunities in data-center transactions and trust deposits. While residential market weakness and commercial real estate dependence pose risks, analysts project 17.7% EPS growth for 2026 and assign the stock a Zacks Rank #2 (Buy) rating with a 38.3% upside potential.

First American Financial is expected to report Q3 2026 earnings of $1.85 per share (up 8.8% YoY) with revenues of $2.13 billion (up 7.5% YoY) on October 21. The company has an Earnings ESP of 0% and Zacks Rank #2, making it difficult to predict an earnings beat. However, FAF has beaten consensus estimates in all four trailing quarters, most recently delivering a +15.56% surprise.

Zacks Premium offers investment research tools including the Zacks Rank stock-rating system and Style Scores to help investors identify high-performing stocks. The system has historically outperformed the S&P 500 with an average annual return of +23.86% since 1988. First American Financial (FAF) is highlighted as a stock to watch with a #3 Hold rank and top-tier Value and VGM Style Scores.