FAF Should I Buy
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First American Financial Corp (FAF) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst ratings, and bullish technical indicators support this conclusion. Additionally, hedge fund buying activity and steady investment income outlook further strengthen the case for a buy.
The technical indicators for FAF are bullish. The MACD histogram is positive and expanding, indicating upward momentum. The RSI is at 65.324, which is neutral but leaning towards overbought territory. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the stock is trading above key support levels (Pivot: 66.948, R1: 68.565, S1: 65.331).
Hedge funds are significantly increasing their buying activity (+166.01% over the last quarter).
Analysts have raised price targets, with Truist setting a target of $82 and Deutsche Bank at $90, both maintaining Buy ratings.
Strong financial performance in Q4 2025, with revenue up 18.44% YoY, net income up 192.68% YoY, and EPS up 197.10% YoY.
Insiders are neutral with no significant trading activity.
The broader market (S&P
is down -0.56%, which could indicate general market weakness.
In Q4 2025, FAF demonstrated strong financial growth. Revenue increased by 18.44% YoY to $2.0031 billion, net income rose by 192.68% YoY to $211.9 million, and EPS surged by 197.10% YoY to 2.05. These results highlight robust profitability and operational efficiency.
Analysts are generally positive on FAF. Recent upgrades include Truist raising the price target to $82 and Deutsche Bank to $90, both maintaining Buy ratings. Barclays raised its target to $70 with an Equal Weight rating. Analysts are optimistic about steady investment income and a better mortgage origination market in 2026.
