It has been about a month since the last earnings report for First American Financial (FAF). Shares have lost about 0.6% in that time frame, outperforming 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 its 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, estimates review have trended downward during the past month.

The consensus estimate has shifted -21.31% due to these changes.

VGM Scores

Currently, First American Financial has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. 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 belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Cincinnati Financial (CINF), has gained 3.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.

Cincinnati Financial reported revenues of $2.65 billion in the last reported quarter, representing a year-over-year change of +14.7%. EPS of $3.14 for the same period compares with $2.28 a year ago.

Cincinnati Financial is expected to post a loss of $0.49 per share for the current quarter, representing a year-over-year change of -128.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -177.3%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Cincinnati Financial. Also, the stock has a VGM Score of D.

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First American Financial Corporation (FAF) : Free Stock Analysis Report

Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report

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

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