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Here's Why First American Financial (FAF) is a Strong Momentum Stock
First AmericanFirst American(US:FAF) ZACKSยท2025-08-21 14:50

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2][9] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score assesses trends in stock price and earnings outlook, using factors like one-week price change and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking the best value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] Stock Example: First American Financial (FAF) - First American Financial, headquartered in Santa Ana, CA, serves various stakeholders in residential and commercial property transactions [12] - FAF holds a 3 (Hold) Zacks Rank with a VGM Score of A and a Momentum Style Score of B, having increased by 12.3% over the past four weeks [13][14] - Recent analyst revisions have increased the earnings estimate for fiscal 2025 by $0.06 to $5.11 per share, with an average earnings surprise of +20.3% [13]