10 Best Stocks to Buy According to John W. Rogers of Ariel Investments

6. First American Financial Corporation (NYSE:FAF)

Ariel Investments’ Stake as of Q4: $249.3 million

Number of Hedge Fund Holders: 28

First American Financial Corporation (NYSE:FAF) is an American financial services firm that offers insurance and settlement services to the real estate and mortgage sectors. This undiversified business strategy means that the firm’s performance greatly depends on the housing market. Notably, First American Financial Corporation (NYSE:FAF) gets the majority of its revenue from the Title Insurance and Services sector.

First American Financial Corporation (NYSE:FAF) reported first-quarter earnings per share of $0.84, beating analysts’ forecasts of $0.81 by $0.03. Revenue for the quarter came in at $1.58 billion, surpassing the average expectation of $1.55 billion. The Title Insurance and Services division reported a 12% year-over-year growth in total revenue, reaching $1.5 billion, driven by a 14% increase in direct premiums and escrow fees and a 16% increase in agent premiums. The Home Warranty division also had strong growth, with total revenue up 2% to $108 million and pretax income jumping 22%.