Top Value Stocks to Consider Purchasing on December 17
Stock Recommendations: Two stocks, Bread Financial Holdings, Inc. and F&G Annuities & Life, Inc., are highlighted as strong buy options with Zacks Rank #1 and significant earnings growth estimates for the current year.
Value Characteristics: Bread Financial has a P/E ratio of 7.30 and a Value Score of A, while F&G Annuities has a P/E ratio of 8.40 and also a Value Score of A, both outperforming their respective industry averages.
Investment Potential: These stocks are considered under the radar, providing a unique opportunity for investors to potentially gain significant returns, as previous recommendations have seen gains of over 100%.
Further Resources: Investors can access additional stock analysis reports and recommendations from Zacks Investment Research, including a list of top-ranked stocks for potential investment.
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- CEO Transition: F&G Annuities & Life announced that Chris Blunt will retire on June 30, with Conor Murphy taking over as CEO, ensuring stability during this leadership change as Blunt has been CEO since 2019.
- Executive Appointment: Conor Murphy, who joined F&G in April 2025 and currently serves as President and CFO, will further drive the company's strategic development as CEO, potentially unlocking new growth opportunities.
- Financial Leadership Change: Michael Bailey has been appointed as Executive Vice President and CFO, succeeding Mark Wiltse in an interim role, with Bailey's previous experience as retail CFO at Corebridge Financial expected to enhance the company's financial management capabilities.
- Market Outlook: F&G Annuities & Life is considered dramatically undervalued, and with the leadership transition, market expectations for its future performance may improve, attracting more investor interest.
- Executive Transition: Chris Blunt, CEO of F&G, will retire on June 30, 2026, to focus on his role at Peak Altitude, with Conor Murphy stepping in as CEO and President, marking a significant leadership change for the company.
- Financial Leadership Change: Michael Bailey will join as Chief Financial Officer effective August 3, 2026, succeeding Mark Wiltse in an interim capacity; Bailey brings 27 years of extensive experience in the life and annuity sector, expected to enhance financial management and strategic capital allocation.
- Strategic Transformation: Under Blunt's leadership, F&G nearly tripled its assets under management since 2019, and the company will continue its shift towards a higher-margin, less capital-intensive business model, with Murphy's appointment seen as pivotal for driving this strategy.
- Market Outlook: F&G's Board Chairman, William P. Foley II, noted that Murphy's extensive industry experience will aid the company in achieving long-term stable earnings growth during this transition, which is expected to positively impact the company's valuation over time.
- Order Backlog Growth: Fasadgruppen Group AB reported a 15% increase in organic order backlog, primarily driven by strong performance in the UK and Norway, indicating robust market demand and significant future growth potential in these regions.
- Successful Capital Raise: The company completed a rights issue, raising approximately 488 million in net proceeds, which was oversubscribed by 142%, reflecting strong shareholder confidence and enhancing the financial foundation to support strategic decisions moving forward.
- Sales Decline Impact: Despite the growth in order backlog, total sales in Q1 2026 decreased by 15% year-over-year due to extremely cold weather in the Nordics, putting pressure on short-term performance, particularly with Clearline's sales in the UK dropping by 34%.
- Future Growth Potential: With a stronger balance sheet post-rights issue, the company is well-positioned for strategic long-term decisions and potential M&A opportunities, showcasing good growth prospects despite regulatory delays and competitive pressures in the market.
- MidCap Addition: On May 18, 2026, SharkNinja (SN) will be added to the S&P MidCap 400 Index, indicating a significant recognition in the consumer discretionary sector, which is expected to attract more investor interest.
- MidCap Deletion: On the same day, Flowers Foods (FLO) will be removed from the S&P MidCap 400 Index, reflecting its underperformance in the market, which may put downward pressure on its stock price.
- SmallCap Addition: Also on May 18, 2026, Flowers Foods (FLO) will be added to the S&P SmallCap 600 Index, showcasing its repositioning in the consumer staples sector, potentially providing new growth opportunities for the company.
- SmallCap Deletion: Concurrently, CSG Systems Intl (CSGS) will be removed from the S&P SmallCap 600 Index, indicating a decline in its competitiveness within the industrial sector, which may affect market confidence in the company.
- Index Component Changes: SharkNinja will replace Flowers Foods in the S&P MidCap 400 effective May 18, 2026, highlighting its growth potential in the consumer goods sector, which is expected to enhance its market recognition.
- Industry Restructuring: Flowers Foods will take the place of CSG Systems Intl in the S&P SmallCap 600, indicating its stability and continued growth in the consumer goods industry, potentially attracting more investor attention.
- Acquisition Dynamics: NEC Corporation is acquiring CSG Systems Intl, with the deal expected to close soon, which will strengthen NEC's market position in the industrial sector and may yield synergies.
- New Additions: F&G Annuities & Life will join the S&P SmallCap 600 on May 19, 2026, replacing Mister Car Wash, indicating its growth potential in the financial services sector, which may draw increased investor interest.
- Assets Under Management: As of Q1 2026, F&G's assets under management (AUM) approached $75 billion, with management focusing on disciplined capital allocation between core and opportunistic sales, thereby enhancing margins and expanding return on equity (ROE).
- Earnings Performance: The company reported adjusted net earnings of $110 million, or $0.82 per share, in the first quarter, despite alternative investment income of $44 million falling short of management's long-term expectations, showcasing the diversity of its new business engine.
- Strategic Alternatives Exploration: Management has initiated a formal process to explore strategic alternatives for the Peak business to capture significant growth opportunities and unlock value for shareholders, indicating a strong focus on future growth.
- Capital Return Plan: F&G returned $67 million of capital to shareholders in the quarter, including $29 million to repurchase approximately 1.2 million shares, and received board approval for a new three-year share repurchase program allowing up to $100 million in common stock buybacks, further boosting shareholder confidence.









