First American Financial Corp (FAF) Stock AnalysisFAFFirst American Financial Corp

First American Financial Corporation, through its subsidiaries, is engaged in the business of providing title insurance, settlement services and other financial services and risk solutions. Its segments include Title Insurance and Services, Home Warranty, and Corporate segment. The Title Insurance and Services segment issues title insurance policies on residential and commercial property in the United States and offers similar or related products and services internationally. This segment also provides closing and/or escrow services, accommodates tax-deferred exchanges of real estate, and maintains, manages and provides access to title plant data and records. The Home Warranty segment provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. The Corporate segment includes investments in venture-stage companies. It operates in the Financials sector (TITLE INSURANCE industry).

First American Financial Corp is a good buy right now due to its current price of $74.47, which is below the analyst price target of $85, indicating a potential upside of 14%. Additionally, the company has shown strong earnings growth with a 36% year-over-year increase in EPS to $2.08 for Q2 2026, and a solid forward P/E ratio of 9.38, suggesting that the stock is undervalued compared to its earnings potential. However, a risk to consider is the cautious outlook on the residential market, which saw a 4% decline in revenue year-over-year.

7 analysts cover FAF: 3 rate it Buy, 4 Hold and 0 Sell. The average price target is 73.75.