HG Vora Capital Management’s Stock Picks For 2025

1. First American Financial Corp (NYSE:FAF)

Shares held by HG Vora Capital Management: 3.345 million

Value of Position: $208.86 million

Last but not least, First American Financial Corp (NYSE:FAF) is the only financial pick in HG Vora’s equity portfolio and it represents its largest holding. First American Financial Corp (NYSE:FAF) provides title insurance and settlement services to real estate and mortgage businesses, operating in both commercial and residential markets. The company generates most of its revenue from the title insurance and services segment (for the fourth quarter, title insurance revenue was $1.61 billion versus total revenue of $1.69 billion) so its performance is negatively impacted by higher interest rates, which leads to fewer real estate transactions (title insurance is most commonly bought when a house is acquired through a mortgage deal or refinanced). Going forward provided the interest rates are expected to decline and the housing market continues to experience high demand, First American Financial Corp (NYSE:FAF) is likely to see an increase in sales.

While we acknowledge the potential of FAF as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FAF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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