First American Financial: Strong Earnings Power Ahead Of A Housing Recovery

First American Financial is undervalued, with the market overlooking its operating leverage, tech investments, and diversified earnings base. FAF's Q1'26 adjusted EPS rose 58% YoY, driven by commercial strength, banking segment growth, and early benefits from AI and automation. Technology initiatives like Endpoint and AI-assisted tools are structurally reducing costs, positioning FAF for significant margin expansion as volumes recover.