First American Corporation (The) (FAF)

FAF stock forecast: buy or sell

FAF stock outlook

  • First American Corporation (New) closed yesterday at $47.77 after skyrocketing a 3.09%.
  • From the chart point view, price is drawing a scaled uptrend since mid-March with higher tops and higher bottoms. This uptrend marked a 64.05% gain
  • First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Specialty Insurance segments.
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Important:
The viewpoints written in this article are personal and not recommendations for you to buy or sell stocks. The author of this text does not know the specific situations of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are published for informational purposes only

FAF stock chart overview

Should I buy First American Corporation (New) stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is FAF stock a buy?

Currently, First American Corporation (New) stock matches one trading strategy:

Uptrend buy setup

First American Corporation (New) stock is in an uptrend since in mid-March that so far has marked a gorgeous 64% gain. Price marked a pull back in this uptrend at $45.76 on Thursday, and since then it bounced off a 4.39%. Breaking out over $55.39 - it's last top - will be a good entry point if First American Corporation (New) resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $49.85

Buy setupBuy pointStop lossRisk
Uptrend buy setup$55.39$49.8510%
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Should I sell First American Corporation (New) stock?

Do you know when is it time to sell First American Corporation (New) stock?. In the same way as when we have to buy shares, determining when is appropiate time to sell is not a haphazard decision, and we must follow our own trading style. We like very simple strategies to guide us on when is the best time to sell a stock. Be aware that these strategies are not intended for shorting FAF stock

As a rule of thumb, you should never hold an investment that produces greater losses than those expected by the time of the buy. When to sell your stock must always be dictated by the stop-loss (automatic or manual)

Is it time to sell First American Corporation (New) stock?

Currently, First American Corporation (New) stock doesn't match any of our preferred sell setups, so if you own First American Corporation (New) shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell First American Corporation (New) stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating published in the last 30 days for First American Corporation (New)

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Technical analysis

Since in mid-March, First American Corporation (New) has been drawing an uptrend that by now marked a gorgeous 64.05%. The price line shows higher highs and higher troughs, and along the way provided some entry points for those who wanted to invest. Latest low was on Thursday, when price bounced at $45.76. Like in all uptrends, price needs to take breath and now price is consolidating the gains in a range between $55.39 and $45.76

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Traders use supports and resistances to identify price points on a chart that tend to work as glass ceiling, containing the price of an asset to move up or down. A support level is a level where the price tends to stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it is likely to continue declining until meeting another support level. On the contrary, resistances are where the price may find a curb as it moves up. Likewise, the price is more liable to "bounce off" at this level, and if it finally breaks this level, it will rise more easily until it approaches the next resistance

The current resistances are:

  • R1: $48.15 (0.8% above)
  • R2: $48.94 (2.45% above)
  • R3: $49.25 (3.1% above)
  • The current supports are:

  • S1: $47.74 (-0.06% below)
  • S2: $47.46 (-0.65% below)
  • S3: $46.95 (-1.72% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-established technical strategy created by John Bollinger. It is made up of 3 lines that are drawn superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price broke down the lower band on June 26, the price bounced by 2.55%

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to plot the current and past strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by traders

    When the RSI stays for so long below 70 and above 30, without any indication of overvaluation and undervaluation, the indicator gets of little use, and we find ourselves in one of these cases.

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    Earnings and financials

    First American Corporation (The) (FAF) posted adjusted EPS for the fiscal first-quarter that grossly failed to match Wall St. expectations. Quarterly EPS was $0.55 per share versus $1.02. This Q1 report represents an earnings surprise of -46.08%. Company's revenue was $1.4 billion versus $1.5 billion estimated by market consensus.

    Same quarter last year, reported EPS was $0.97, so current EPS means a reduction of -43.3%. Looking at sales, figures went up a 8.46% compared to $1.3B year over year.

    FAF presents earnings report on Thursday next week. Forecasted EPS for this quarter is $0.65. Financial reporting day has a more than usual risk for investors as the information provided can jump up or down the stock price with very low liquidity and not respecting your buy or stop-loss orders. You can find more details about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.firstam.com.

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