First American Financial (FAF) Down 11.5% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for First American Financial (FAF). Shares have lost about 11.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is First American Financial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

VGM Scores

At this time, First American Financial has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, First American Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

First American Financial is part of the Zacks Insurance - Property and Casualty industry. Over the past month, W.R. Berkley (WRB), a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended March 2025 more than a month ago.

W.R. Berkley reported revenues of $3.53 billion in the last reported quarter, representing a year-over-year change of +9.3%. EPS of $1.01 for the same period compares with $1.04 a year ago.

For the current quarter, W.R. Berkley is expected to post earnings of $1.06 per share, indicating a change of +1.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.

W.R. Berkley has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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